Relationship between short-term financing and working capital practices
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Explain the relationship between short-term financing and working capital practices. Discuss various aspects of this area in relation to resource optimization regarding a given firm. Use examples when possible.
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Solution Summary
The relationship between short-term financing and working capital practices are analyzed. A discussion of various aspects of this area in relation to resource optimization regarding a given firm is given. Examples are used where needed to deepen understanding.
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Decisions relating to working capital and short term financing are referred to as working capital management. These involve managing the relationship between a firm's short-term assets and its short-term liabilities. The goal of Working capital management is to ensure that the firm is able to continue its operations and that it has ...
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