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    Question

    The difference between the current assets and current

    liabilities of a business is defined as:
    A Gross working capital Correct Answer Incorrect Answer
    B Net working capital Correct Answer Incorrect Answer
    C Permanent working capital Correct Answer Incorrect Answer
    D Temporary working capital Correct Answer Incorrect Answer
    E Negative working capital Correct Answer Incorrect Answer

    Solution

    Net working capital per year = Current assets – Current liabilities

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