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Doctors Medicines MCQs Q&A

  1. Profitability varies inversely with risk
  2. Liquidity moves together with risk
  3. Profitability moves together with risk
  4. Profitability moves together with liquidity
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1 Answers

Answer: Option 3

Profitability moves together with risk is a basic principle of finance as it relates to the management of working capital. Profitability is ability of a company to use its resources to generate revenues in excess of its expenses.

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