Accountancy, asked by Janriya, 4 months ago

Management of working capital implies trade-off between ?​

Answers

Answered by nautiyalkrish25
4

Answer:

Greater liquidity makes it easy for a firm to meet its payment commitments, but simultaneously greater liquidity involves cost also. The risk-return trade-off involved in managing the firm's working capital is a trade-off between the firm's liquidity and its profitability.

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