Working capital management is not important for new firms since they will be able to generate positive cash flows at some time in the future.

Question

Quizplus · Accepted Answer

Working capital management is important for new firms as they may face cash flow challenges during their initial stages of operation. Proper management of working capital is necessary to ensure that the firm has enough liquidity to meet its short-term obligations and to finance its day-to-day operations. Failure to manage working capital effectively can lead to cash flow problems, which can in turn affect the firm's ability to meet its financial obligations and to invest in its growth.

Working Capital Management Is Not Important for New Firms Since