A firm's net working capital position is a widely used measure of its .
A)leverage
B)profitability
C)risk
D)none of these

Question

Quizplus · Accepted Answer

Net working capital is the difference between a firm's current assets and current liabilities. A strong net working capital position indicates that a company has enough short-term assets to cover its short-term liabilities. This implies that the company is less likely to face liquidity issues, which is a measure of its risk. Therefore, the correct answer is C) risk.

A Firm's Net Working Capital Position Is a Widely Used