Question

♡⚫Heya Matez⚫♡
Chapter: Sources of finance
Ques: Define working capital with example.​

Answer 1

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❏The cash available for day-to-day operations of an organization. Strictly speaking, one borrows cash (and not working capital) to be able to buy assets or to pay for obligations. Also called current capital.

❏The amount of available working capital is a measure of a firm's ability to meet its short-term obligations.

Answer 2

Explanation :

Working capital are majorly derived from trade credit including notes payable and bills payable while short term working capital sources include dividend or tax provisions, cash credit, public deposits, trade deposits, short-term loans, bills discounting, inter-corporate loans and also commercial paper.

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