Working Capital Management Refers Specifically To

question 93

Multiple Choice

Working capital management refers specifically to:

• A) Obtaining the necessary funds to finance a firm's long term activities.
• B) The daily use of a firm's fixed assets to generate revenue.
• C) The oversight of a firm's current accounts.
• D) The management of a firm's loan accounts from financial institutions.
• E) The utilization of a firm's assets daily.

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Definitions:

Labor-Capital Ratio

The ratio of labor inputs (workforce numbers or hours worked) to capital inputs (machinery, buildings, and technology) in production processes.

Capital Stock

The total amount of physical and financial assets owned by a business or country, including buildings, machinery, equipment, and shares.

Labor Productivity

The measure of economic performance that compares the amount of goods and services produced with the number of labor hours used to produce them.

Per-Worker Production Function

A mathematical function that represents output per worker as a function of capital per worker or other inputs.