Question

What Is Insufficient Capital

Answer 1

Answer:

In accounting working capital is simply defined as the day to day finances used by a firm. In other words the flow of money used in the working day. All businesses need money. ... Insufficient working capital is the common most cause of business failure.

Answer 2

Too many new businesses start their business without enough capital. They just don't have enough money in the bank to support them while their cash flows get up to speed.

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