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:

Implicit Memory

Memory that enables task performance improvement by utilizing prior experiences, all without the conscious recall of these experiences.

Word Completion

A psychological task where participants are asked to complete words from partially presented stimuli, often used to assess memory or cognitive processing.

Working Memory

A cognitive system that holds and manipulates information in short-term memory for tasks such as reasoning and comprehension.

Long-term Memory

The aspect of memory responsible for storing information over extended periods, potentially throughout a person’s life.