Question

which of the following following is the spontaneous source of financing the working capital requirements?
1.commercial paper
2.account payable
3.bank finance
4.all of the above

Answer 1

4) all of the above.......

Answer 2

Commercial Paper, Account Payable and Bank Finance are the source of financing the working capital requirements.

Explanation:

“Working capital management” is managing a balance between less term financial needs and short term liabilities. The key aim of “working capital management” is to meet daily operational expenses.

To get the best out of the working capital, it can be invested in the less span of time.

Following are the types of capital requirements for the short time.

1. Commercial paper

2. Account payable

3. Bank finance