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proper working capital management

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Why is proper working capital management critical to the survival of a healthcare organization? What would be the most appropriate working capital policy to follow?

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Solution Summary

The value of proper working capital management within health care is emphasized.

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Working capital, properly defined, is the sum of a health care organization's investment in current assets, or simply defined as total current assets. Working capital is an important measure of an organization's ability to meet its current liabilities or its short term debt paying capacity. Working capital is also important because it is the catalyst that makes fixed ...

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