How Is the Working Capital Need Calculated

question 1

Multiple Choice

How is the working capital need calculated?

• A) Working capital + Net cash
• B) Fixed assets - Current liabilities
• C) Current assets (except cash)- Current liabilities
• D) Long-term debt - Current assets

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Definitions:

Limited Partnership

A partnership consisting of one or more general partners and one or more limited partners.

Sole Proprietorship

A business structure where a single individual owns and operates the business, responsible for all its debts and liabilities.

Corporation

A legal entity recognized by law as a separate entity from its owners, with its own rights, privileges, and liabilities.

Partnership Agreement

A Partnership Agreement is a legal document that outlines the rights and responsibilities of the partners involved in a business partnership.