For a growing firm,the change in net working capital is generally:
A)positive.
B)negative.
C)highly erratic.
D)highly negative.
E)equal to zero.

Question

Quizplus · Accepted Answer

As a firm grows, it typically requires more current assets such as inventory and accounts receivable to support increasing sales. This results in an increase in the company's net working capital, which means it becomes more positive.

For a Growing Firm,the Change in Net Working Capital Is