In general, the less net working capital a company has Identical to item 67
A)the greater the risk.
B)the lower the risk.
C)the less likely creditors will lend to the firm.
D)none of the above

Question

Quizplus · Accepted Answer

Net working capital is a measure of a company's liquidity and its ability to meet its short-term obligations. A lower net working capital indicates that the company has less current assets to cover its current liabilities. This means that the company may face difficulty in paying its bills and meeting its obligations, which increases the risk associated with investing in the company. Therefore, the less net working capital a company has, the greater the risk.

In General, the Less Net Working Capital a Company Has