Types of working capital, Financial Management

Assignment Help:

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 Permanent Working Capital relates to that minimum amount of investment in current assets which is necessary at all times to carry on minimum level of business activities. It signifies the current assets required on a continuing basis over the whole year, and hence should be financed out of long term funds.  Tandon Committee has related to this kind of Working capital as 'Core Current Assets'.

Temporary Working capital defines the additional current assets required at different times through the operating year.


Related Discussions:- Types of working capital

Apv capital budgeting framework helpful for foreign capital, What makes the...

What makes the APV capital budgeting framework helpful for analyzing foreign capital expenditures? The APV framework is a value- additivity method. As international projects fr

Weighted average cost of capital or composite, Q. What is denoted by weight...

Q. What is denoted by weighted average cost of capital OR Composite? How is it calculated? Exemplify with an example. Ans. Weighted Average Cost of Capital: - Capital formation

Yield curve strategies, Yield curve strategies take into account the ...

Yield curve strategies take into account the distribution of the maturities of the bonds of the portfolio in order to take advantage of the forecasted movements o

Define factor fx call or put option model price is function, List the argum...

List the arguments (variables) of which a FX call or put option model price is a function.  How does the call and put premium change with respect to a change in the arguments?

Automatic reinvestment plan, Automatic Reinvestment Plan Like in the US...

Automatic Reinvestment Plan Like in the US, UTI India has also started this plan where the amount of dividend and other income accrued on mutual fund investments is automatical

Role of market efficiency, Role of market efficiency: Market efficiency...

Role of market efficiency: Market efficiency signifies how ‘quickly and accurately' does relevant information have its effect on the asset prices. Depending upon the degree of

Role of financial intermediaries in the financial system, Role of Financial...

Role of Financial Intermediaries in the financial system: Having designed the instrument, the issuer should then ensure that these financial assets reach the ultimate investor

What do you mean by collateralized mortgage obligation, Q. What do you mean...

Q. What do you mean by Collateralized Mortgage Obligation? Collateralized Mortgage Obligation (CMO) - SECURITY whose cash flows equal the difference between cash flows of colla

Accounting framework - convention of consistency, Accounting Framework  - ...

Accounting Framework  - Convention of Consistency This doctrine denotes that accounting rules, practices & conventions should be continuously observed and applied that implies

What are the components of return, What are the Components of Return Re...

What are the Components of Return Return is fundamentally made up of two components: Periodic cash receipts or income on the investment in the form of interest,

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd