Final answer:
The correct statement among the options is b) Working capital management is the day-to-day management of the firm's short-term assets and liabilities. Other options incorrectly describe the roles of creditors, marketing managers, and auditors, hence option e) is also incorrect.
Step-by-step explanation:
Among the options provided, the statement b) Working capital management is the day-to-day management of the firm's short-term assets and liabilities is correct.
Working capital management involves handling the everyday financial operations, managing current assets such as cash, inventory, and receivables, as well as current liabilities like payables. The primary aim is to ensure that a firm has sufficient liquidity to meet its short-term obligations and operate efficiently.
Option (a) is incorrect because creditors are not owners; they are entities or individuals to whom the company owes money. Creditors do generally expect to be repaid with interest. Option (c) is incorrect as it is typically the responsibility of a risk manager or CFO, rather than a marketing manager, to deal with financial risk exposure and insurance.
Option (d) misrepresents the role of auditors; they are independent of the company and are tasked with verifying financial statements, not preparing them or maintaining financial systems, which is the job of the company's accounting department. Lastly, based on this analysis, option (e) is also incorrect as it claims all answers are correct.