Two Key Management Functions That Need Particular Attention When Starting

question 273

Multiple Choice

Two key management functions that need particular attention when starting a business are

• A) human relations and accounting.
• B) planning and financing.
• C) marketing and public relations.
• D) staffing and controlling.

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Definitions:

Net Working Capital

The difference between a company's current assets and its current liabilities, indicating the liquidity and operational efficiency of the business.

Current Assets

Short-term assets that are expected to be converted into cash, sold, or consumed within one year or within the business's operating cycle, whichever is longer.

Current Liabilities

Obligations a company needs to pay off within one year or within its operating cycle, whichever is longer.

Free Cash Flow

The amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets, indicating the company's ability to generate additional revenues.