Question: Question 1 - (25 marks) a. Critically differentiate between the three main models of working capital management. b. Is it possible to use financial ratios

Question 1 - (25 marks) a. Critically differentiate between the three main models of working capital management. b. Is it possible to use financial ratios to determine the model of working capital management applied at a company? If yes, which ratio will be more useful and provide an interpretation of how the ratio can be used to determine what model of working capital management is applied at a particular firm. c. Determine which of the three working capital management approaches will be more appropriate for a construction company that specializes in the building of domestic and commercial buildings. Provide reasonable justification for your response
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
