Working capital management focuses on:

A Long-term investments

B Managing short-term assets and liabilities to ensure sufficient liquidity for daily operations

C Mergers and acquisitions

D Dividend policy

✓ Correct Answer: Option B

Working capital management: optimizing current assets (cash, AR, inventory) and current liabilities (AP, short-term debt) to balance liquidity, operational efficiency, and profitability.

💡 Why is B) the correct answer?

The correct answer to the question "Working capital management focuses on:" is Option B: Managing short-term assets and liabilities to ensure sufficient liquidity for daily operations.

The other options — A) Long-term investments, C) Mergers and acquisitions, D) Dividend policy — are incorrect for this Pre-MBA Exam Prep question. As explained above: Working capital management: optimizing current assets (cash, AR, inventory) and current liabilities (AP, short-term debt) to balance liquidity, operational efficiency, and profitability.

📚 About This Pre-MBA Exam Prep Practice Question

This 2-level Pre-MBA Exam Prep question from the Finance topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free Pre-MBA Exam Prep practice test or use flashcards for spaced repetition review.

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Working capital management focuses on:

✓ Correct Answer: Option B

📚 About This Pre-MBA Exam Prep Practice Question

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