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Commerce · Q23

Business Finance

Graduate and Post Graduate · Commerce · question 23

Q23

Negative net working capital means assets are not being used effectively, and a company may face a liquidity crisis. This implies

A.
Long-term funds have been used for fixed assets
B.
Short-term funds have been used for fixed assets
Answer
C.
Long-term funds have been used for current assets
D.
Short-term funds have been used for current assets

Answer: Option B

Solution

Answer: Option B
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