alleryStart learning →Why must a firm hold positive working capital?
ATo pay maturing dues
BTo avoid paying tax
CTo revalue fixed assets
DTo redeem its equity
Answer & Solution
Correct answer: A. To pay maturing dues
Positive working capital provides funds for maturing short-term debt and running expenses.
Keep practising Integrated Business Solutions
Browse all Integrated Business Solutions questions for CA Final, or explore more Strategic Management topics.
Related questions
In 1988 Mintzberg found the strategic process to be more?The SWOT matrix is also known as?The discount rate that gives a bond's price as NPV is called its?Applied ex-ante, what does the IRR provide?Two projects give equal returns; one pays earlier. Which has higher IRR?Rs 1,21,000 arrives in 2 years. At 10% annual discount, present value?Outlay Rs 1,00,000; inflow Rs 1,10,000 after one year; discount rate 10%. NPV?A profitable firm lacks liquidity if assets cannot be quickly?