Question

Define working capital

Answer 1

Money in hand and raw materials are working capital because it is not fixed like tools and buildings.

Answer 2

It is one of the factors affecting the organization of production. Working capital comes under Physical Capital. 
   Working Capital is raw materials and money in hand. Production requires a variety of raw materials such as yarn used by the weaver and clay used by the potter. Money is always required during productions to make payments to buy necessary items.
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