00:01
Hello students, let us solve the problem.
00:02
Here is a question.
00:04
Identify the incorrect statement in connection to the working capital management.
00:11
So, our first thing is conservative financial policy uses short -term fund to finance only the part of fluctuating current asset.
00:20
So, let us solve this.
00:23
We have to choose the incorrect option from this.
00:26
Option a is conservative financial policies uses short -term fund to finance only part of fluctuating current asset and our b option are long -term funds are more expensive, more expensive and more risky than short -term fund and option c is the objective of working capital management are the objective of working capital management are profitable and liquidity and our option d is permanent current asset should be financed from permanent current assets should be financed from long -term source if moderate policy is adopted, policy is adopted.
02:30
So, these are the options we have.
02:32
Let us find out which is incorrect in this.
02:34
So, when it comes to an working capital management, a conservative financial policy uses a short -term funds to finance only the part of fluctuating current assets.
02:44
This was the right answer and when it comes to option c, the object of working capital management of profitable and liquidity...