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Dominik [7]
3 years ago
15

Companies prefer that their working capital is a positive amount rather than a negative amount. True or false

Business
1 answer:
Roman55 [17]3 years ago
5 0

Answer:

True

Explanation:

The working capital is the difference between the current assets that is used in daily operations e g cash to current liabilities that are to be met in daily operations e g suppliers credit.

It's better kept at ratio 2:1 for the Company to continuously meets his obligations in order to ensure perpetuity.

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<h3>What is Expense Budget?</h3>
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