A Firm's Working Capital Position Is Important from an Internal

Multiple Choice

A firm's working capital position is important from an internal and external standpoint. Which of the following is not true?

A) It measures a firm's risk.
B) Provisions for a minimum working capital position are often included in restrictive covenants.
C) A firm's policy often affects its ability to obtain debt.
D) A working capital position determines its level of common stock sales.