Net Working Capital Is Defined As

question 66

Multiple Choice

Net working capital is defined as:

• A) total liabilities minus shareholders' equity.
• B) current liabilities minus shareholders' equity.
• C) fixed assets minus long-term liabilities.
• D) total assets minus total liabilities.
• E) current assets minus current liabilities.

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Definitions:

Common Supervision

The practice of overseeing and managing employees or departments by a single supervisor or management entity.

More Formalized

Pertains to structures or procedures being more rigorously and precisely specified or organized.

Mechanistic

describes organizations or systems that are highly structured, with clear hierarchical levels, rules, and roles, emphasizing efficiency and predictability in operations.

Organic Structure

A flexible, decentralized organizational design that emphasizes informal networks of communication and empowers employees to take decisions.