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9 July, 07:30

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

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  1. 9 July, 07:45
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    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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