Question

overload of working capital
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Answer 1

Explanation:

Excess working capital means that the working capital of a company is higher than the norm. Working capital means the amount of current assets that exceed the current liabilities of a company.

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Answer 2

Overload of working capital

Explanation:

• Overload of working capital means the funds which has no profits for the business so the overload of working capital is a bad position for a business.
• When there is overload of working capital then it result in unnecessary purchase of machineries and it result chances of  theft and losses.
• There may be more debtors and it result in bad debts. There is no good relation with the bank.
• There may be speculative transactions so there is lower rate of return on investment.

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overload of working capital

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