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

Question

Quizplus · Accepted Answer

Working capital management decisions primarily pertain to the short-term financial management of a firm, such as managing cash, inventory, and accounts receivable. Therefore, Option A is the most appropriate choice as it encompasses the day-to-day financial matters of a firm. Option B is more relevant to capital structure decisions and Option C is more relevant to capital budgeting decisions, which are not directly related to working capital management.

Working Capital Management Decisions Help to Determine