There is one word underlined. From the list of words lettered A to D, choose the word or group of words that is most nearly opposite in meaning to…
There is one word underlined. From the list of words lettered A to D, choose the word or group of words that is most nearly opposite in meaning to the underlined word in the sentence. His decision was impulsive, not ___ as everyone had hoped.
Explanation
Working capital is current assets minus current liabilities. Measures short-term financial health – ability to pay immediate obligations and fund daily operations.
Components: cash, receivables, inventory (assets); payables, short-term loans (liabilities). Too little working capital risks inability to pay bills; too much means idle resources.
Working capital cycle: cash → inventory → receivables → cash. Faster cycle means less capital tied up. Management involves: controlling stock levels, collecting debts promptly, negotiating payment terms.