Illustrate and clearly explain how profitable businesses can become bankrupt due to the mismanagement of their working capital.In your explanation, define what working capital is, along with its major components, as well as the difference between cash flow and profits.Finally, describe how businesses can mitigate this problem of going broke while still being technically profitable.

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The Answer of Illustrate and clearly explain how profitable businesses can become bankrupt due to the mismanagement of their working capital.In your explanation, define what working capital is, along with its major components, as well as the difference between cash flow and profits.Finally, describe how businesses can mitigate this problem of going broke while still being technically profitable.

Illustrate and Clearly Explain How Profitable Businesses Can Become Bankrupt