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FM
Question Practice

What is the relationship between working capital and liquidity?

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA
CBSE
Class 12
Business Studies
Business Studies - II
Financial Management
Question Bank

What is the relationship betwe...

Single Answer MCQ
Q-00092865

What is the relationship between working capital and liquidity?

1

Working capital is irrelevant to liquidity

2

Higher working capital usually indicates better liquidity

3

Liquidity is independent of working capital

4

Working capital solely depends on long-term assets

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