Question

A liberal working capital policy will lead to

Answer 1

hey...

Net working capital is excess of Current Assets over Current liabilities. .... The need for working capital arises due to time gap between production and realisation of cash from sales.

Answer 2

A liberal working capital policy means

A plan comprising of reasonable investments in the company's current assets. Under general conditions a liberal working capital policy will always benefit the company because if such a stable policy is followed by the company the risk levels in the market go down and the marginal returns also lessen up.