Question

Working capital management focuses on making sure that an organization has sufficient resources to operate:

a) In accordance with its mission

b) Over the next year

c) Efficiently

d) over the expected life of the organization

Answer 1

Answer will be C) Efficiently.

Working capital is a daily affairs and must be maintain to smooth and efficient function of the organisation.

Mission is a long term objentive and Working capital is a daily affairs and hence otion A will be invalid in this case.

Over the next year, It is very much correct that we calculate working capital from Current asset and current liabilities which is generally seen as a1year period but working capital fills the gap between Current Asset and Current liabilities and this gap filled in daily basis for efficient functioning.

Yes working capital will form part as long as the Organisation operate but again it is a short term and daily basis affairs.

Hence the answer will be C) EFFICIENTLY.