Question

1.Working capital management refers to Select one: a. capital structure b. long-term financing decisions. c. investing...

1.Working capital management refers to Select one: a. capital structure
b. long-term financing decisions.
c. investing in product developme
d. the management of cash flows.
2.The percentage of the next dollar you earn that must be paid in taxes is referred to as the tax rate. Select one:

a. average
b marginal
c.total
d. deductible

Homework Answers

Answer #1

Answer to question 01:- option (d) the amnagement of cash flows, Reason for it is - that working capital means [Current Aseet - Current Liabilities] and woking capital management means getting your cash flows perfect.

Option 1 is INCORRECT because Capital Structure means what is the composition of our capital, in other words what is the % of Equity and Liabilities available in our capital.

option 2 is incorrect because it talks about long term financing whereas Working capital Management is concerned about short term decisions.

option 3 is Incorrect because it tals about new investment in some product

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