These decisions affect the liquidity as well as profitability of a business.Which of the following decision is being referred to here?

Working capital decision Capital budgeting decision Financing decision Operating 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.