CUET Preparation Today
| These decisions affect the liquidity as well as profitability of a business. Which of the following is being referred to here? |
Capital budgeting decision Financing decision Working capital decision Dividend decision |
| Working capital decision |
| Short-term investment decisions (also called working capital decisions) are concerned with the decisions about the levels of cash, inventory and receivables. These decisions affect the day-to-day working of a business. These affect the liquidity as well as profitability of a business. Efficient cash management, inventory management and receivables management are essential ingredients of sound working capital management |
