Which one of the following questions is a working capital management decision? A) Should the company issue new shares of stock or borrow money? B) Should the company update or replace its older equipment? C) How much inventory should be on hand for immediate sale? D) Should the company close one of its current stores? E) How much should the company borrow to buy a new building?

C) How much inventory should be on hand for immediate sale

Explanation:

working capital management is essential in organization because it gives a reliable cash forecast. Some of the components that enables the organization to maintain a successful operation of the firms such as Accounts payable, Accounts receivable and Inventory levels can be known through working capital management.

It should be noted that to have a good

working capital management, one of the question that needs to be asked is that How much inventory should be on hand for immediate sale

answer; the above statement is (true);

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