Which of the following would be considered an issue that is related to the management of working capital?
A) How much inventory should the firm maintain?
B) How should a firm finance its current assets?
C) To whom should the firm grant trade credit?
D) All of the above

Question

Quizplus · Accepted Answer

All three options relate to working capital management. The level of inventory affects a company's cash flow and its ability to meet its short-term obligations. Financing of current assets impacts the cost of working capital and the profitability of the company. Trade credit also affects a company's cash flows and its ability to pay its own suppliers. Therefore, all of the options listed would be considered issues related to working capital management.

Which of the Following Would Be Considered an Issue That