Classification of working capital, Financial Management

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Q. Classification of Working Capital?

Classification of Working Capital: - Working Capital is able to be classified in two ways firstly on the basis of concept and secondly on the basis of its need.

(1) On the Basis of Concept: - Based on this working capital may be of two types:

(i) Gross Working Capital

(ii) Net Working Capital

(2) On the Basis of Need: - On this basis as well working capital may be of two types:

(i) Permanent Working Capital

(ii) Temporary Working Capital.

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