Ensuring that a ﬁrm has suﬃcient cash available on a daily basis is part of:
A) Capital budgeting.
B) Working capital management.
C) Business organization.
D) Capital structure.
E) Organizational structure.

Question

Quizplus · Accepted Answer

Working capital management involves managing a firm's current assets and liabilities to ensure that it has sufficient cash flow for daily operations. As such, ensuring that a firm has sufficient cash available on a daily basis is part of working capital management.

Ensuring That a ﬁRm Has Suﬃcient Cash Available on a Daily