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Working capital management covers all decisions involving current assets and:
ACurrent liabilities
BCapital liabilities
CContingent litigation
DCorporate legislation
Answer & Solution
Correct answer: A. Current liabilities
1. Both sides of the short term are covered.
2. Assets alone are not enough.
3. It also covers current liabilities.
_Source: OpenStax Principles of Finance 2e, Chapter 19, The Importance of Working Capital._
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