Megan, a financial manager at Price Manufacturing, an MNE, strives to minimize the firm's working capital balances. Why would this most likely be important for Price Manufacturing?

Question

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Working capital typically earns a very low rate of return compared to other uses of capital within a company. By minimizing working capital balances, a firm can allocate resources more efficiently to areas with higher returns, thus improving overall financial performance.

Megan, a Financial Manager at Price Manufacturing, an MNE, Strives