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MC Question 14

Which of the following statements concerning working capital management are correct?

(1) The twin objectives of working capital management are profitability and liquidity
(2) A conservative approach to working capital investment will increase profitability
(3) Working capital management is a key factor in a company’s long-term success

A. 1 and 2 only
B. 1 and 3 only
C. 2 and 3 only
D. 1, 2 and 3

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