Q127
The fixed proportion of working capital should be generally financed from the ____ capital sources.
A.
fixed
B.
variable
C.
semi-variable
D.
borrowed
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
The fixed proportion of working capital should be generally financed from the borrowed capital sources. Borrowed capital consists of money that is borrowed and used to make an investment. It differs from equity capital, which is owned by the company and shareholders. Borrowed capital is also referred to as "loan capital."