MANAGEMENT

Detailed explanation-1: -Permanent working capital refers to the minimum amount of working capital i.e. the amount of current assets over current liabilities which is needed to conduct a business even during the dullest period. Was this answer helpful?

Detailed explanation-2: -What Is Working Capital? Working capital, also known as net working capital (NWC), is the difference between a company’s current assets-such as cash, accounts receivable/customers’ unpaid bills, and inventories of raw materials and finished goods-and its current liabilities, such as accounts payable and debts.

Detailed explanation-3: -Working capital includes only current assets, which have a high degree of liquidity-they can be converted into cash relatively quickly. Fixed assets are not included in working capital because they are illiquid; that is, they cannot be easily converted to cash.

Detailed explanation-4: -Working Capital is also known as circulating capital.