If the investment in working capital is too low, this may imply that:

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There are too few current assets

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There may be insufficient cash to pay the running costs of the business

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Inventory may run out and sales may therefore be lost

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All of the above statements apply to low working capital investment

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If the credit terms for debtors are too strict, sales may drop as customers may be 
 
able to obtain a better deal elsewhere.

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