Question

8.Write about the objectives of working capital management?

Answer 1

Answer:

The primary objective of working capital management is to ensure smooth operating cycle of the business. Secondary objectives are to optimize the level of working capital and minimize the cost of such funds.

The superior objective of financial management is wealth maximization and that can be gained by profit maximization accompanied with sustainable growth and development. For sustainable growth and development, the objectives of all the stakeholders including customers, suppliers, employees, etc should be aligned to the growth of the organization.