What is working capital and factors affecting working capital
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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.
Factor affecting working capital:
1. Length of Operating Cycle.
2. Nature of Business.
3. Scale of Operation.
4. Business Cycle Fluctuation.
5. Technology and Production Cycle:
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.
Factor affecting working capital:
1. Length of Operating Cycle.
2. Nature of Business.
3. Scale of Operation.
4. Business Cycle Fluctuation.
5. Technology and Production Cycle:
Answered by
1
____hlo mate____
your answer
a working capital is calculated as current assest minus current liabilities , which is used in day to day trading.....
hope it help u☠☠
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