Solved: Aggressive or conservative working capital policy, Finance Basics

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Aggressive or conservative working capital policy

Question 1: Is it possible for an organization to operate with negative net working capital? Why or why not?

Question 2: Would a company with high profit margins be more likely to adopt an aggressive or a conservative working capital policy? Why?

Question 3: Is it possible for an organization to be profitable and run out of cash? How?

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Finance Basics: Aggressive or conservative working capital policy

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