The goal of working capital management is to ________.
A) achieve a balance between short-term and long-term liabilities so that they add to the achievement of a firm's overall goals
B) achieve a balance between a firm's non-current assets and non-current liabilities
C) achieve a balance between profitability and risk that contributes positively to a firm's value
D) achieve a balance between short-term and long-term assets so that they add to the achievement of a firm's overall goals

Question

Quizplus · Accepted Answer

The goal of working capital management is to achieve a balance between profitability and risk that contributes positively to a firm's value. This involves effectively managing a firm's short-term assets and liabilities to ensure that it has enough cash flow to meet its operational needs while also minimizing the risk of financial distress. The other choices do not accurately describe the goal of working capital management.

The Goal of Working Capital Management Is to ________