BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Working capital management represents the relationship between a firm’s short-term assets and its short-term liabilities. It aims to ensure that a company can afford its day-to-day operating expenses while also investing the company’s assets in the most successful direction possible.

Detailed explanation-2: -In short, working capital is the money available to meet your current, short-term obligations. To make sure your working capital works for you, you’ll need to calculate your current levels, project your future needs and consider ways to make sure you always have enough cash.

Detailed explanation-3: -Working capital management ensures the best utilisation of a business’s current assets and liabilities for the company’s effective operation. The main aim of managing working capital is to monitor a company’s assets and liabilities to maintain adequate cash flow and meet short-term business goals.

Detailed explanation-4: -What Is a Working Capital Loan? A working capital loan is a loan that is taken to finance a company’s everyday operations. These loans are not used to buy long-term assets or investments and are, instead, used to provide the working capital that covers a company’s short-term operational needs.

Detailed explanation-5: -Working capital management involves balancing movements related to five main items – cash, trade receivables, trade payables, short-term financing, and inventory – to make sure a business possesses adequate resources to operate efficiently.