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:

Opioids

A class of drugs that include both illegal drugs like heroin and prescription painkillers such as oxycodone and morphine, known for their pain-relieving properties and high potential for addiction.

TC

Therapeutic Community, a treatment model focusing on the community or social environment as a method for promoting psychological and behavioral change.

Developmental

Pertaining to the process of growth and change over time, especially in the context of human growth, behavior, and psychology.

Psychological

Relating to the mind or mental processes, often involving emotional or behavioral characteristics of individuals or groups.