An Effective Program of Working Capital Management Requires That

Multiple Choice

An effective program of working capital management requires that:

A) the firm run with the absolute minimum in each current asset account.
B) a series of cost/benefit tradeoffs be considered because running a business is easier with more working capital than with less, but holding working capital costs money.
C) large inventories be maintained to adequately service customers.
D) credit can be easily granted to customers to encourage higher sales.