Which of the following is a basic principle of finance as it relates to the management of working capital?

A Profitability varies inversely with risk
B Liquidity moves together with risk
C Profitability moves together with risk
D Profitability moves together with liquidity

Correct Answer: Profitability moves together with risk

Profitability moves together with risk is a basic principle of finance as it relates to the management of working capital. Profitability is ability of a company to use its resources to generate revenues in excess of its expenses.
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#Commerce #Financial Management

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