Which of the Following Statements About Net Working Capital (NWC)

question 36

Multiple Choice

Which of the following statements about net working capital (NWC) is correct?

• A)NWC is positive for all firms.
• B)as NWC decreases, potential liquidity increases.
• C)NWC excludes inventory, which is deemed illiquid.
• D)decrease in NWC can increase the firm's risk of bankruptcy.

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Definitions:

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The worth of the best option given up by choosing to follow a specific course of action.

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