Is the System Shown Closed Under the Operation

question 1

Multiple Choice

Is the system shown closed under the operation?

• A)Yes
• B)No

---

Definitions:

Net Operating Working Capital

The difference between operating current assets and operating current liabilities, indicating the liquidity available for a company's day-to-day operations.

Short-Term Debt

Short-term debt comprises borrowings that are due to be repaid within one year, commonly used to fund daily operations or immediate financial needs.

Maturities Matching

Maturities matching is a strategy of coordinating the maturity dates of assets and liabilities to manage risk and liquidity.

Short-Term Financing

A type of corporate financing used to cover immediate financial needs and is typically due for repayment within a year.