Working capital management includes which one of the following?
A)deciding which new projects to accept
B)deciding whether to purchase a new machine or fix a current machine
C)determining which customers will be granted credit
D)determining how many new shares of stock should be issued
E)establishing the target debt-equity ratio

Question

Quizplus · Accepted Answer

Working capital management involves managing short-term assets and liabilities to ensure that a business can meet its operational requirements. Determining which customers will be granted credit is a crucial aspect of working capital management as it directly impacts a company's cash flow and liquidity. Deciding which new projects to accept, whether to purchase a new machine or fix a current machine, determining how many new shares of stock should be issued, and establishing the target debt-equity ratio are all strategic decisions that are not directly related to working capital management.

Working Capital Management Includes Which One of the Following