explain the meaning of working capital describe its effect on day to day farming activities
Answers
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Raw materials and money in hand is known as working capital. Some money is always required during production to make payments and buy other necessary items.
Working capital is related with day-to-day activities in farming like use of seeds, pesticides, insecticides, manure, wages of labour etc. So production in farming is high for more working capital.
Higher working capital would facilitate more purchase of seeds, fertilisers and wages, so higher yield would be there.
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Answer:
Working capital is related with day-to-day activities in farming like use of seeds, pesticides, insecticides, manure, wages of labour etc. So production in farming is high for more working capital. Higher working capital would facilitate more purchase of seeds, fertilisers and wages, so higher yield would be there.