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Question

Capital that is highly liquidatable at any point in time during the business is called ______________.


A

Debt Capital

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B

Financial Capital

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C

Working Capital

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D

Fixed Capital

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Solution

The correct option is C

Working Capital


Capital that is highly liquidatable at any point in time during the business is called working capital. Working capital investments can be readily converted into cash. It determines the short-term solvency position of the company.


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