Managing the relationship between current assets and current liabilities of the firm in order to improve the flow of funds is called​ ________.
A. the business operating cycle
B. the production cycle
C. working capital management
D. the cash conversion cycle

Respuesta :

Answer:

C. working capital management 

Explanation:

Working capital management is managing the relationship between current assets and current liabilities of the firm in order to improve the flow of funds.

Working capital management is done to ensure there's sufficient cash flows to meet short term obligations.

Working capital = current assets - current liabilities.

The business operating cycle calculates the length of time it takes for a business to make the initial cash investment to carry out production activities till when consumers pay for products.

Production cycle is the length of time from when raw materials are acquired to when the final goods and services are produced.

Cash conversion cycle calculates the length of time it takes for a firm to convert investments made to income from sales.

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