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Which of the following is a basic principle of finance as...

This question belongs to Commerce Financial Management
Financial Management
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Which of the following is a basic principle of finance as it relates to the management of working capital?

Answer & Solution
Correct Answer: Option C
Profitability moves together with risk is a basic principle of finance as it relates to the management of working capital. Profitability is ability of a company to use its resources to generate revenues in excess of its expenses.
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