Question

Working capital management is concerned with A. what long-term investments a firm should undertake. B. managing a firm's capital stock. C. how a firm should raise money to fund its investments. D. how a firm can best manage its cash flows as they arise in its day-to-day operation

Answer 1

D. how a firm can best manage its cash flows as they arise in its day-to-day operation

Explanation:

Working capital is the capital use to managed the day to day activities of the business. Working capital is calculated as current asset - current liabilities.

working capital management involves managing the cash flow of the business as they arise in the day to day operation.

The management of working capital helps the organisation to effectively manage its short term debt and expenses.