Which one of the following questions is a working capital management decision?
A) Should the company issue new shares of stock or borrow money?
B) Should the company update or replace its older equipment?
C) How much inventory should be on hand for immediate sale?
D) Should the company close one of its current stores?
E) How much should the company borrow to buy a new building?

Question

Quizplus · Accepted Answer

Working capital management decision involves managing a company's short-term assets and liabilities, including inventory. Therefore, determining how much inventory should be on hand for immediate sale is a working capital management decision. Option A, B, D, and E are not working capital management decisions.

Which One of the Following Questions Is a Working Capital