Final answer:
Working capital management is primarily concerned with the management and financing of current assets and current liabilities, balancing inventory, managing receivables and payables, and maintaining sufficient liquidity. Option B is correct.
Step-by-step explanation:
Working capital management is primarily concerned with the management and financing of current assets and current liabilities. It involves ensuring that a company can continue its operations and has sufficient ability to satisfy both maturing short-term debt and upcoming operational expenses. The management of working capital includes managing inventories, accounts receivable and payable, and cash.
Proper working capital management helps prevent an asset-liability time mismatch, which is a situation where customers can withdraw a bank's liabilities in the short term while customers repay its assets in the long term. In essence, working capital is a key part of a company's balance sheet, demonstrating how well they can meet short-term obligations.