For purposes of liquidity,it is better to have a negative net working capital.

Name: For purposes of liquidity,it is better to have a negative net working capital.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

It is actually better to have a positive net working capital as it indicates that a company has enough current assets to cover its current liabilities. Negative net working capital may indicate financial difficulties, which can lead to liquidity problems.

For Purposes of Liquidity,it Is Better to Have a Negative