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Assets that turn into cash within a year through normal operations are contrasted with capital that is:
ALoose-term
BLong-term
CLow-term
DLate-term
Answer & Solution
Correct answer: B. Long-term
1. Working capital is short term by nature.
2. Plant and land are not.
3. The contrast is with long-term capital.
_Source: OpenStax Principles of Finance 2e, Chapter 19, The Importance of Working Capital._
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