Explain the following term/concept. Working capital - Secretarial Practice

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Short Note

Explain the following term/concept.

Working capital

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Solution

Working capital is the capital which is used to carry out the day-to-day business activities. Working capital ensures smooth functioning of the business firm. The capital invested in building up inventories, in financing receivables and to meet day-to-day operating expenses is referred to as working capital.

Concept: Capital Requirements
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APPEARS IN

Balbharati Secretarial Practice 12th Standard HSC Maharashtra State Board
Chapter 1 Introduction To Corporate Finance
Exercises | Q 2. 4. | Page 13
SCERT Maharashtra Question Bank 12th Standard HSC Secretarial Practice Maharashtra State Board 2022
Chapter 1 Introduction To Corporate Finance
Explain the following terms / concepts | Q 2
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