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On the surface, it seems that a firm would want to hold high levels of current assets to stay liquid and ensure that it can
On the surface, it seems that a firm would want to hold high levels of current assets to stay liquid and ensure that it can meet all its short-term obligations. However, current assets are not very productive and very low returns when held. Therefore, a firm must strike the balance of current assets that works best for it. In the following table, identify which current asset investment policy fits best with each firm
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