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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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