Question: 1. What are the main determinants of net working capital?
2. Discuss the risk-return relationship involved in the firm's asset-investment decisions as that relationship pertains to its working capital management
3. What should be the key consideration when selecting a short-term credit or loan?
4. Explain what is meant by the statement "The use of current liabilities as opposed to long-term debt subjects the firm to a greater risk of illiquidity.