Question

Which among the following is not an essential ingredient of sound working capital management?

Options

• Efficient cash management

• Receivables management

• Inventory management

• Surplus management

Answer 1

Surplus management

Explanation:

Sound working capital management focuses on efficiently managing cash, receivables, and inventory to ensure smooth day-to-day operations. Surplus management, on the other hand, deals with handling excess funds, which is not a core aspect of working capital management.