If an organization has a high amount of working capital compared to the industry average, which of the following is most likely true?
If an organization has a high amount of working capital compared to the industry average, which of the following is most likely true?
A . Settlement of short-term obligations may become difficult.
B. Cash may be bed up in items not generating financial value.
C. Collection policies of the organization are ineffective.
D. The organization is efficient in using assets to generate revenue.
Answer: B
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