The goal of working capital management is to
A) balance current assets against current liabilities.
B) pay off short-term debts.
C) achieve a balance between risk and return in order to maximize the firm's value.
D) achieve a balance between short-term and long-term assets so that they add to the achievement of the firm's overall goals.

Question

Quizplus · Accepted Answer

The primary goal of working capital management is to ensure that a firm has sufficient liquidity to meet its short-term obligations while also optimizing its investment in current assets to maximize the firm's value, balancing risk and return.

The Goal of Working Capital Management Is to