Question on: SS2 Accounting - Interpretation of Accounts Using Simple Accounting Ratios Equity: Working Capital

What can happen if a business does not have enough working capital?

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A

It may struggle to pay its bills and could face bankruptcy.

 

B

It may have too much cash on hand.

C

It may have to pay more taxes than necessary.

D

It may have difficulty finding customers.

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Correct Option: A

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