Working capital management, Financial Management

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Q. Working capital management?

Every business needs funds for the two purposes for its establishments and to carry out day to day operations. Long terms funds are required to create the production facilities through the purchase of the fixed assets such as the plant and machinery , land and building, furniture etc. investment in these assets represent the part of the firm's capital which in blocked in the permanent of the fixed basis and is called the fixed capital. Funds are also needs for the short terms purposes for the purchase of the raw materials and to pay the wages on the day to day basis. These funds are known as the working capital. in the simple words working capital is known as the part of the firm's capital which is known as the financial current assets such as the cash and marketable securities, debtors and the inventory . fund that invest in the current assets keep revolving fast and are being contently covertly in the vash and this cash flow out again the in exchange in the other current assets . hence it is known as revolving calculative capital or the short terms capital.


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