Question
Choose the most logical order of sentences from among the four given choices to construct a coherent paragraph. (
- A The goal of working capital management is to maximize operational efficiency.(
- B By improving the way they manage working capital, companies can free up cash that would otherwise be trapped on their balance sheets. (
- C Working capital management is a business process that helps companies make effective use of their current assets and optimize cash flow. (
- D It’s oriented around ensuring short-term financial obligations and expenses can be met, while also contributing towards longer-term business objectives.
Solution
The correct sequence is CDAB.Sentence C defines working capital management, making it a strong introductory sentence.
Sentence D builds on this definition by explaining its purpose—managing short-term obligations while aligning with long-term goals.
Sentence A then states the primary objective of working capital management, providing more clarity on its importance.
Sentence B logically concludes the paragraph by explaining the benefits of effective working capital management—freeing up cash trapped on balance sheets.
As a result, they may be able to reduce the need for external borrowing, fuel growth, fund mergers or acquisitions, or invest in R&D.
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