A Firm with Negative Net Working Capital _______________

question 319

Multiple Choice

A firm with negative net working capital _______________.

• A) Is technically bankrupt.
• B) Has no cash on hand.
• C) Needs to sell some of its inventory to correct the problem.
• D) Has more current liabilities than current assets.
• E) Most likely will not run short of cash over the next six months.

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Definitions:

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The financial value anticipated, demanded, or provided as compensation for something.

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