For most corporations, net working capital is:

Question

Quizplus · Accepted Answer

Net working capital is the difference between current assets and current liabilities. For most corporations, having a positive net working capital provides liquidity during the cash conversion cycle. This allows the company to meet its short-term obligations and maintain operations. Negative net working capital can indicate potential liquidity problems, while having no net working capital means the company has no cushion to cover short-term obligations. Therefore, option C is the best choice.

For Most Corporations, Net Working Capital Is