Restricted net operating working capital policy
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Restricted net operating working capital policy is a policy under which holdings of cash, securities, inventories, and receivables are minimized.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Restricted net operating working capital policy. A policy under which holdings of cash, securities, inventories, and receivables are minimized.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
