What is meant by working capital?
What will be an ideal response?
Working capital is considered a primary measure of a company's financial flexibility. It is defined as current assets less current liabilities. Working capital measures include the current ratio (current assets divided by current liabilities) and the acid test (cash, marketable securities, and receivables divided by current liabilities). The stronger the company's liquidity measures, the better it can weather a downturn in business and reduction in cash flow.
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When managers realize the fate of their organization is inextricably linked to other companies, their firms migrate to a ________:
a. supply management orientation b. procurement orientation c. value orientation d. buying orientation
Which of the following terms refers to a form of organizational structure in which people can be held accountable for their actions because they are required to act in accordance with well-specified and agreed-upon rules and standard operating
procedures? A) an organic organization B) a bureaucracy C) a matrix organization D) an autocracy