Question

In: Finance

The management of the firm's short-term assets and liabilities is called ___________ A. Financial risk management....

The management of the firm's short-term assets and liabilities is called ___________

A. Financial risk management.

B. Financial leverage management.

C. Working capital management.

D. Capital budgeting decision.

Solutions

Expert Solution

Net working capital = Current assets-Current liabilities

Both current assets and current liabilities form part of working capital. Working capital is adequately required for smoother production and functioning of operations. This process is called working capital management.

Hence, correct option is C. Working capital management.


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