Managing funding for the company's day-to-day operations is known as [blank].
A)capital budgeting decisions
B)working capital management
C)capital structure decisions
D)generating sustainable portfolios

Question

Quizplus · Accepted Answer

Working capital management refers to the management of a company's short-term assets and liabilities to ensure that sufficient cash flow is available to meet day-to-day operating expenses. It involves managing inventory levels, accounts receivable, accounts payable, and cash balances to ensure that the company has enough working capital to operate smoothly. Capital budgeting decisions (A) relate to long-term investment decisions, capital structure decisions (C) involve determining the optimal mix of debt and equity financing, and generating sustainable portfolios (D) is a broad topic that may include financial investment decisions but does not specifically relate to managing day-to-day operations.

Managing Funding for the Company's Day-To-Day Operations Is Known as [Blank]