Working capital management includes which one of the following- A

Working capital management includes which one of the following-

C. Determining which customers will be granted credit.

This is a working capital management decision because granting credit results in decreased cash flows and increases current assets which are included in working capital.

Let's analyse other options:

A. Deciding which new projects to accept. - It is a capital budgeting decision.

B. Deciding whether to purchase a new machine or fix a current machine. - Again, a capital budgeting decision.

D. Determining how many new shares of stock should be issued. - It is a Financing decision.

E. Establishing the target debt-equity ratio. - It is again, a financing decision.