The Purpose of Managing Current Assets and Current Liabilities Is

question 145

Multiple Choice

The purpose of managing current assets and current liabilities is to ________.

• A) achieve a balance between short-term and long-term financing of a firm
• B) achieve as low a level of current liabilities as possible
• C) achieve a balance between profitability and risk that contributes to a firm's value
• D) achieve as high a level of current liabilities as possible

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Definitions:

Timely

Occurring at a suitable or opportune time; well-timed.

Ambiguous

Lacking clarity or certainty, open to more than one interpretation, or vaguely defined.

Personal Gossip

The informal sharing of private or sensitive information about individuals within a social network without their permission, often leading to rumors or breaches of trust.

Vertical Communication

The exchange of information and messages between different levels of an organization's hierarchy, including upward and downward communications.