Why raw materials and money are called working capital
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hye.....
◆raw material means the material from which , one has to manufacture something.... it is produced mainly in the primary sector ... so raw material is used to manufacture something in the secondary sector.
we cannot use something that is only produced by the primary sector , it must be manufactured in the factories or industries
◆ working capital means money in hand during the production of something, it is the money that is used at every stage of production and is very essential in any production to take place...... at every stage of production , we need some money to purchase raw material...so this money is used in such things.....
●●both raw material and money are called working capital b'coz we need them at every stage of production ●●
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◆raw material means the material from which , one has to manufacture something.... it is produced mainly in the primary sector ... so raw material is used to manufacture something in the secondary sector.
we cannot use something that is only produced by the primary sector , it must be manufactured in the factories or industries
◆ working capital means money in hand during the production of something, it is the money that is used at every stage of production and is very essential in any production to take place...... at every stage of production , we need some money to purchase raw material...so this money is used in such things.....
●●both raw material and money are called working capital b'coz we need them at every stage of production ●●
keep smiling
keep loving❤❤
Answered by
0
Becoz..
It takes time to complete the production and then sell these goods or services In the market..
This requirement for raw material and money is therefore called "working capital.."
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