Within the context of working capital management:

Select one:

a.

as the firm increases its investment in working capital, there is a corresponding increase in its profits.

b.

current liabilities provide a flexible means of financing the firm's fluctuating needs for assets.

c.

the use of current liabilities or short-term debt as opposed to long-term debt subjects the firm to less risk of illiquidity.

d.

all of the above.