One aspect of the working capital management is the trade-off between profitability and _______________.

Risk

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Liability

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Uncertainity

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Innovation

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Solution

The correct option is B Risk
The risk-return trade-off involved in managing the firm's working capital is a trade-off between the firm's liquidity and its profitability.
Other things being equal, the greater the firm's reliance is on the short-term debts or current liability in financing its current investment, the greater the risk of illiquidity will be there.

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