28.03.2023 - 15:14

Working capital management includes which one of the following- A. Deciding which new projects to accept. B. Deciding whether to purchase a new machine or fix a current machine. C. Determining whic

Working capital management includes which one of the following-

A. Deciding which new projects to accept.

B. Deciding whether to purchase a new machine or fix a current machine.

C. Determining which customers will be granted credit.

D. Determining how many new shares of stock should be issued.

E. Establishing the target debt-equity ratio.

Answers (1)
  • Class-ik
    April 6, 2023 в 20:11

    The correct option for the question "Working capital management includes which one of the following" is (C) Determining which customers will be granted credit.

    Working capital management involves managing a company's short-term assets and liabilities, including cash, inventory, accounts receivable, and accounts payable, to ensure that it has enough liquidity to meet its short-term obligations. One of the key aspects of working capital management is determining which customers will be granted credit. This involves analyzing the creditworthiness of customers and setting credit limits, payment terms, and collection policies to minimize the risk of bad debts and ensure timely payment of outstanding invoices.

    Option A, deciding which new projects to accept, relates to capital budgeting, which involves evaluating and selecting long-term investment projects. Option B, deciding whether to purchase a new machine or fix a current machine, also relates to capital budgeting, as it involves evaluating the costs and benefits of different long-term investment options. Option D, determining how many new shares of stock should be issued, relates to capital structure decisions, which involve determining the mix of debt and equity financing for a company. Option E, establishing the target debt-equity ratio, also relates to capital structure decisions.

Do you know the answer?
Not sure about the answer?
Find the right answer to the question Working capital management includes which one of the following- A. Deciding which new projects to accept. B. Deciding whether to purchase a new machine or fix a current machine. C. Determining whic by subject Economics, and if there is no answer or no one has given the right answer, then use the search and try to find the answer among similar questions.
Search for other answers
New questions in the category: Economics
Authorization
*
*

Password generation