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Why do funders prefer to see a positive working capital in a company?
  • a)
    A positive working capital indicates the company is not profitable.
  • b)
    A positive working capital suggests the company has more assets than it needs.
  • c)
    A positive working capital means the company can cover its financial obligations.
  • d)
    Funders prefer a negative working capital for higher returns.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Why do funders prefer to see a positive working capital in a company?a...
Funders prefer to see a positive working capital because it indicates that the company has sufficient current assets to cover its financial obligations, ensuring it can meet short-term debts and expenses.
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Why do funders prefer to see a positive working capital in a company?a)A positive working capital indicates the company is not profitable.b)A positive working capital suggests the company has more assets than it needs.c)A positive working capital means the company can cover its financial obligations.d)Funders prefer a negative working capital for higher returns.Correct answer is option 'C'. Can you explain this answer?
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Why do funders prefer to see a positive working capital in a company?a)A positive working capital indicates the company is not profitable.b)A positive working capital suggests the company has more assets than it needs.c)A positive working capital means the company can cover its financial obligations.d)Funders prefer a negative working capital for higher returns.Correct answer is option 'C'. Can you explain this answer? for B Com 2025 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Why do funders prefer to see a positive working capital in a company?a)A positive working capital indicates the company is not profitable.b)A positive working capital suggests the company has more assets than it needs.c)A positive working capital means the company can cover its financial obligations.d)Funders prefer a negative working capital for higher returns.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for B Com 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Why do funders prefer to see a positive working capital in a company?a)A positive working capital indicates the company is not profitable.b)A positive working capital suggests the company has more assets than it needs.c)A positive working capital means the company can cover its financial obligations.d)Funders prefer a negative working capital for higher returns.Correct answer is option 'C'. Can you explain this answer?.
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