What is the matching principle of working capital


1.What is the matching principle of working capital financing?  What are the benefits of following this principle?

2.What are the advantages and disadvantages of the aggressive working capital financing approach?

3.What is the most conservative type of working capital financing plan a company could implement?  Explain.

4.What are the primary reasons that companies hold cash?

5.Explain the factors affecting the choice of a minimum cash balance amount.

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Financial Management: What is the matching principle of working capital
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