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Dear sir,there was this question on WC management which I’ve copied below…
Which TWO of the following are the objectives of working capital management?
A. Increased profitability
B. Adequate liquidity
C. Increased current assets
D. Increased current liabilitiesWell i think that the answer is A and B but not sure about it so could you please confirm sir.
Much thanks
It is A & B
Working capital management aims to strike a balance between maintaining sufficient liquidity to meet short-term obligations and maximising profitability by efficiently utilising current assets and liabilities.
Increasing current assets or liabilities this is wrong as excessive levels can lead to inefficiencies and increased costs.
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