ENTREPRENEURIAL OPPORTUNITIES
IDENTIFYING AND EVALUATING BUSINESS OPPORTUNITIES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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permanent capital
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working capital
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growth capital
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contingency capital
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Detailed explanation-1: -Working capital is used to purchase inventory, pay short-term debt, and day-to-day operating expenses. Working capital is critical since it’s needed to keep a business operating smoothly.
Detailed explanation-2: -Circulating capital: It is referred to the money capital used in purchasing raw materials. Usually the term working capital and circulating capital are used synonymously.
Detailed explanation-3: -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-4: -The raw materials and money in hand are known as working capital, which is used for the production of commodities. It is also called as current capital.