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Questions and Answers
What is the main purpose of financial goals?
What is the main purpose of financial goals?
- To focus only on short-term plans
- To reach long-term goals only
- To spend money without a plan
- To achieve financial milestones in earning, saving, investing, and spending (correct)
Which type of financial goal takes less than 3 months to achieve?
Which type of financial goal takes less than 3 months to achieve?
- Intermediate
- Neither Short-Term nor Long-Term
- Short-Term (correct)
- Long-Term
What is the main characteristic of Short Term Finance?
What is the main characteristic of Short Term Finance?
- It involves working capital financing (correct)
- It is used for long-term investments
- It is focused on long-term liabilities
- It takes more than 12 months to repay
What is the main function of Working Capital Management?
What is the main function of Working Capital Management?
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Why is understanding Working Capital Management crucial for businesses?
Why is understanding Working Capital Management crucial for businesses?
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What does the Working Capital Cycle (WCC) measure?
What does the Working Capital Cycle (WCC) measure?
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Which of the following is a source of Short Term Working Capital Financing?
Which of the following is a source of Short Term Working Capital Financing?
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What is the purpose of Trade Credit in working capital management?
What is the purpose of Trade Credit in working capital management?
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How can a company reduce its Working Capital Cycle according to the text?
How can a company reduce its Working Capital Cycle according to the text?
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Why is short-term financing considered less risky than long-term financing?
Why is short-term financing considered less risky than long-term financing?
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