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Essay text:
The decisions involved in Working capital management are short term decisions.
Objectives of working capital management:
The primary objective of working capital management is to ensure that sufficient cash is available to:
• Meet day-to-day cash flow needs.
• Minimize the risk of insolvency.
• Pay all the operational expenses when they fall due.
• Pay creditors to ensure continued supplies of goods and services.
• Pay government taxation and providers of capital dividends.
• Ensure the long-term survival of the business entity.
• Increase the profitability of the company...
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