Under which circumstance would a company want to reexamine its level of working capital? a.) If...
Under which circumstance would a company want to reexamine its level of working capital?
a.) If a company has excessive capital invested in the short term
b.) If a company has sufficient operating liquidity
c.) If a company has positive working capital
d.) If a company's current assets exceed its current liabilities
Homework Answers
The correct answer is option a If a company has excessive capital invested in the short term
Explanation: The goal of working capital
management is to ensure that the company has enough liquidity to
cover its day-to-day operations and pay its short-term debt
obligation. In this case since, the company is short on
liquidity.
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Under which circumstance would a company want to reexamine its level of working capital?
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