As Long as a Firm Is Generating Positive Net Income

question 137

True/False

As long as a firm is generating positive net income each year it need not be concerned with working capital management because it will always be able to meet all short-term liquidity needs.

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Definitions:

Coordinating

The method of coordinating individuals or teams to ensure they collaborate effectively and efficiently.

Organizational Rules

The policies, guidelines, and regulations that govern the operations and behavior within a company or institution.

Norms

Shared standards or rules that guide and constrain behavior within a group or society.

Memoranda

Written notes or reminders used in business and professional contexts, also referring to official documents and communications between entities.