Asked by Denver Osborn on Apr 28, 2024
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Minimizing cash holdings,inventories,or receivables,and maximizing payables or accruals are the aims of relaxed working capital policies.
Minimizing Cash Holdings
A financial strategy focused on reducing the amount of cash a company or individual keeps on hand, often to boost efficiency or investment returns.
Relaxed Working Capital Policies
Financial strategies that involve maintaining higher levels of current assets than necessary or reducing short-term liabilities, aiming for greater flexibility and lower risk of liquidity problems.
- Comprehend the significance of working capital policies on a firm's financial health and operations.
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Learning Objectives
- Comprehend the significance of working capital policies on a firm's financial health and operations.
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