Mastering Working Capital Management
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Questions and Answers

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?

  • 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?

  • To improve cash flow and liquidity (correct)
  • To minimize short-term liabilities
  • To increase long-term investments
  • To decrease short-term assets
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