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      Question

      In a 'Working Capital' loan, the difference between

      Current Assets and Current Liabilities is known as:Β 
      A Gross Working Capital Correct Answer Incorrect Answer
      B Net Working Capital Correct Answer Incorrect Answer
      C Operating Cycle Correct Answer Incorrect Answer
      D Cash Flow Correct Answer Incorrect Answer
      E Debt Service Coverage Ratio Correct Answer Incorrect Answer

      Solution

      Net Working Capital (NWC) = Current Assets - Current Liabilities. It indicates the short-term liquidity position of a business.

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