Final answer:
True, establishing a line-of-credit is indeed a working capital management decision aimed at ensuring short-term liquidity for a firm.
Step-by-step explanation:
T or F? Establishing a line-of-credit with a commercial bank to ensure adequate short-term liquidity is an example of a working capital management decision. The answer is true. Working capital management involves decisions about a firm's short-term assets and liabilities, including how to ensure liquidity to meet short-term obligations. Arranging a line-of-credit helps businesses smooth out their financial operations by providing them with access to funds when they are needed. This aids in covering expenses such as payroll, inventory, and other operating costs, especially during periods when inflows might be irregular or when unexpected expenses arise.