Home › MBA › Financial Management › Financial Management › Decisions about levels of cash, inventory and re…
Decisions about levels of cash, inventory and receivables are:
ACapital budgeting choices
BDividend policy choices
CCapital structure choices
DWorking capital decisions
Answer & Solution
Correct answer: D. Working capital decisions
1. They affect day-to-day working.
2. These are short-term investment or working capital decisions.
3. They affect both liquidity and profitability.
_Source: NCERT Class 12 Business Studies Part II, Chapter 9, Financial Management._
Related questions
Excess cash invested in cash alternatives is said to create:Because payments for purchases are usually made on credit, cash outflows in a month often Assets that turn into cash within a year through normal operations are contrasted with capCash held by a business is needed above all to pay the bills and meet the:Credit taken from suppliers, recorded as accounts payable, is called:Better inventory management, better collections and longer supplier terms together will:Working capital needs that stay in place all year round are described as:Working capital needs that rise and fall with the season are described as: