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Q. Define Working Capital.
Ans. Introduction: - Working capital plays the similar role in the business as the role of heart in the human body. Just like heart gets blood as well as circulates the same in the body, in the similar way in working capital, funds are generated as well as then circulated in the business. As and when this flow stops the business becomes lifeless. Therefore prudent management of Working capital is necessary for the success of a business.
Q. Credit Standards for Formulation of Optimum Credit Policy? Credit Standards: - Credit standards are the essential criteria set for extension of credit to customers. Decision
TYPES OF WORKING CAPITAL Working capital can be split up into two categories on the basis of time. They are Permanent Working Capital and Temporary or Variable Working capital
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