In General, the Less Net Working Capital a Company Has

question 19

Multiple Choice

In general, the less net working capital a company has

• A)the greater the risk.
• B)the lower the risk.
• C)the less likely creditors will lend to the firm.
• D)none of the above

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Definitions:

Opportunity

A favorable situation or set of circumstances that presents itself, which can potentially lead to growth, development, or success if capitalized on properly.

Strength

An attribute or internal capability of a company or individual that provides a competitive advantage in the market or enhances performance.

Weakness

A term used in SWOT analysis to denote internal limitations or areas where a business or individual performs poorly.

SWOT Analysis

A strategic planning tool used to identify and understand the Strengths, Weaknesses, Opportunities, and Threats related to a business or project.