The statement that the relative profitability of a firm that employs an aggressive working capital financing policy will improve if the yield curve changes from upward sloping to downward sloping is false.
Relative profitability as well as the relative growth can be described as the differences between a firm's profitability as well as the growth measures of its industry.
It should be noted that the relative profitability of a firm that employs an aggressive working capital financing policy may not experience any improvement in a case whereby the yield curve changes from upward sloping to downward sloping.
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