💼 Pre-MBA Exam Prep

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.

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