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Q. Major objective of working capital management?
The major objective of working capital management is to decide the optimum amount of working capital required. Usually management of working capital means management of current assets.
Concepts of Working Capital: - There are 2 concepts of working capital-
(1) Gross Working Capital Concept
(2) Net Working Capital Concept.
Illustration Let us assume that Vishal Mehta & Co., (from Illustration 1) is using the following discounting rates in place of one rate:
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