Within the context of working capital management,the risk-return trade-off involves an increased risk of unpaid bills versus increased profitability.

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The risk-return trade-off in working capital management refers to the balance between the risk of not collecting money owed versus the potential profitability of extending credit to customers. As a company extends credit, there is a risk of unpaid bills. However, extending credit can also increase profitability by attracting more customers and facilitating sales. Finding the appropriate balance between risk and return is a critical aspect of working capital management.

Within the Context of Working Capital Management,the Risk-Return Trade-Off Involves