In the economic environment of 2010-2014, the U. S. experienced a slow-growing economy with record low interest rates. In what ways does this type of economic environment diminish the importance of working capital management to the firm

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Explanation:

During the year 2007, the eruption including its sub-prime crisis struck the U.S., which escalated to a full-fledged financial crisis. Whilst also 2010-2014, the United States government had not fully recovered from the crisis, as well as the unemployment number was still high. It would still be trying to do it anyway. This consequently led towards a low demographic demand and therefore a decline in supply, that contributed to little company growth.' This inevitably eventually led to a heavy budget.We recognize that maintenance of working capital applies to investments in existing assets such as inventory that are repossessed within the next year or shorter and therefore are necessary for the day-to-day activities of the company. It also serves as a buffer against liquidity tightening restricting access to extra money. Even though short-term yields were already low, interest rates are low, making it extremely difficult to raise financial operating expenses, businesses are now struggling to retain their investment returns intact. The value of the maintenance of capital expenditures is thus reduced.