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    Question

    In a 'Working Capital' loan, the difference between

    Current Assets and Current Liabilities is known as:┬а
    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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