What Is Permanent Working Capital

Multiple Choice

What is permanent working capital?

A) the amount that a firm must keep invested in its short-term assets to support its continuing operations
B) the difference between the actual level of investment in short-term assets and the amount that a firm must keep invested in its short-term assets to support its continuing operations
C) the amount that a firm keeps invested in its short-term assets to support its continuing operations which is financed by short-term debt
D) the amount that a firm keeps invested in its short-term assets to support its continuing operations which is financed by long-term debt
E) the amount that a firm keeps invested in its short-term assets which is financed by debt