Once a business begins to grow, an entrepreneur needs to keep an eye on ________, which is defined as "Current Assets minus Current Liabilities."

Question

Quizplus · Accepted Answer

Working capital is the correct answer since it refers to the amount of cash available to a business for day-to-day operations. As the business grows, it becomes critical for entrepreneurs to keep tabs on their working capital to ensure that they have enough cash on hand to meet their obligations. The operating ratio is a financial metric that compares a company's revenue to its expenses, and capital assets refer to the long-term fixed assets a company owns. None of these choices are as directly related to cash flow and liquidity as working capital.

Once a Business Begins to Grow, an Entrepreneur Needs to Keep