A fiRm with Negative Net Working Capital ____________________

question 210

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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