How Is the Net Working Capital Calculated

question 67

Multiple Choice

How is the net working capital calculated?

• A) Net working capital = total liabilities minus retained earnings
• B) Net working capital = total assets minus current assets
• C) Net working capital = total liabilities minus current liabilities
• D) Net working capital = current assets minus current liabilities
• E) Net working capital = total equity minus retained earnings

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Definitions:

Power Motives

The driving factors behind individuals' desire to influence, control, or have authority over others or situations.

Emotional Appeal

A persuasive technique targeting emotions to influence an audience's response or motivate action.

Security Needs

The need for safety and protection in both physical and emotional aspects.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, which suggests that people are motivated to fulfill basic needs before moving on to other needs, forming a hierarchy.