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Questions and Answers
Which one of the following best defines working capital management?
Which one of the following best defines working capital management?
- The process of managing a company's long-term investments
- The process of managing a company's human resources
- The process of managing a company's short-term assets and liabilities (correct)
- The process of managing a company's marketing strategies
What is the main goal of working capital management?
What is the main goal of working capital management?
- To minimize short-term assets
- To maximize long-term investments
- To maximize short-term assets
- To maintain a balance between short-term assets and liabilities (correct)
Why is working capital management important for a company?
Why is working capital management important for a company?
- To improve cash flow and liquidity (correct)
- To minimize short-term liabilities
- To increase long-term investments
- To decrease short-term assets
