The Need to Manage Net Working Capital Arises Because

question 20

Multiple Choice

The need to manage net working capital arises because:

• A) financial management is naturally broken into those areas.
• B) shareholders want to ensure they receive dividend payments.
• C) there is a mismatch between the timing of cash inflows and cash outflows.
• D) the sum of current assets and current liabilities usually is zero.
• E) the capital structure pie is limited in size.

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