Question

What do you mean by working capital ? ​

Answer 1

Explanation:

Working capital is the amount of cash a business can safely spend. It's commonly defined as current assets minus current liabilities. Usually working capital is calculated based on cash, assets that can quickly be converted to cash (such as invoices from debtors), and expenses that will be due within a year ...

Answer 2

Answer:

Raw materials and money in hand are thus called working capital. Tools, machines, buildings etc is called fixed capital. These can be used production over many years on the other hand raw materials, and money in hand which is called working capital, are used up in production.