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Questions
What is working capital?
What is Circulating Capital?
Very Short Answer
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Solution 1
The term ’fund’ refers to working capital. Working capital refers to the excess of current assets over current liabilities.
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Solution 2
Working capital refers to the funds required for a business to manage its day-to-day operations smoothly. It is the capital invested in current assets like cash, inventory, and receivables, minus the current liabilities such as payables and short-term debts.
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Notes
Students should refer to the answer according to their questions.
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