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Which asset-liability combination would most likely result in the firm's having the greatest risk of technical insolvency ?

a. Increasing current assets while lowering current liabilities.

b. Increasing current assets while incurring more current liabilities

c. Reducing current assets, increasing current liabilities, and reducing long-term debt.

d. Replacing short-term debt with equity.

 
 
 
 
 
 
Answer : c