Working capital management decisions involve:
A) how a company's day-to-day financial matters should be managed.
B) how the company should finance its assets.
C) which productive assets the company should employ.
D) all of the above.

Question

Quizplus · Accepted Answer

Working capital management decisions primarily focus on managing a company's current assets and liabilities to ensure sufficient liquidity for daily operations. These decisions include managing short-term financing, inventory levels, accounts receivables and payables, and cash balances. While financing and asset allocation decisions may indirectly impact working capital, they are not the primary focus of working capital management decisions. Hence, option A is the correct answer.

Working Capital Management Decisions Involve