Final answer:
Working capital management includes Inventory control (option B), which ensures efficient management of company's short-term assets and liabilities, and is not concerned with Long-term investments, Debt repayment, or Shareholder dividends.
Step-by-step explanation:
Working capital management is a crucial aspect of the financial health of a company as it involves managing the short-term assets and liabilities to ensure that a company operates efficiently.
The correct answer to your question is B) Inventory control, which is a part of working capital management, encompasses managing the company's inventory efficiently to ensure that the company can meet its short-term obligations and operate effectively.
Other aspects, such as A) Long-term investments, C) Debt repayment, and D) Shareholder dividends, are not directly related to working capital management, as they are focused on long-term financial management and equity financing, rather than the short-term balance of current assets and liabilities
Working capital management includes inventory control. Inventory is an important part of a company's working capital, as it represents the value of goods available for sale. Effective management of inventory ensures that a company can meet customer demand while minimizing carrying costs and potential obsolescence.
For example, a retail store needs to manage its inventory to ensure it has enough products to meet customer demand, but not so much that it ties up too much capital or ends up with outdated or unsellable items. By optimizing inventory levels and turnover, a company can improve its cash flow and overall financial performance.