Candidates were asked to identify the objectives of working capital management and to discuss the central role of working capital management in financial management. This question related directly to section C1 in the F9 Study Guide.

Better answers identified profitability and liquidity as the main objectives of working capital management, perhaps briefly explaining the conflict between the two, before focusing on a discussion of the central role of working capital management in financial management, referring perhaps to the importance of cash and cash management, the importance of currents assets to a company, the importance of current liabilities as a source of finance, especially for SMEs, the need to have policies relating to the elements of working capital such as trade receivables and inventory, and so on.