3067. Which of the following is a basic principle of finance as it relates to the management of working capital?

Profitability varies inversely with risk
Liquidity moves together with risk
Profitability moves together with risk
Profitability moves together with liquidity
✅ The correct answer is C.
Profitability moves together with risk is a basic principle of finance as it relates to the management of working capital. Profitability is ability of a company to use its resources to generate revenues in excess of its expenses.

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