Question

'If employees behave ethically, there is no need for expensive control systems to manage working capital.’ Do you agree or disagree with this statement? Justify your answer.

Answer 1

It can be mentioned that, I actually disagree with the following statement and this is because of the fact that even if employees behave ethically it is very important to gather expertise in order to understand the working capital issues where you can actually find methods in order to reduce the working capital or effectively use it. therefore you can not say always that ethical behaviour directly in place effective behaviour because inadequate knowledge can exist even while working ethically which is the reason why still control systems are required to manage working capital