Examlex
Give an example of each and state why it would be better than a more negative approach.
Working Capital Policy
A strategic approach to managing a company's short-term assets and liabilities to ensure it has sufficient liquidity to meet its short-term obligations.
Temporary Financing
Short-term loans or credit facilities intended to provide immediate liquidity or cover a short-term funding gap until long-term financing can be arranged.
Short-Term Assets
Assets expected to be converted into cash, sold, or consumed within one year or the operating cycle, whichever is longer.
Aggressive Working Capital Policy
A strategy emphasizing minimal cash and inventory levels and maximizing short-term liabilities to fund operations and investments.
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