BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Long Term Funds, available to support the short term requirement of the unit
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Promoters’ Margin
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Short Term Funds arranged by the unit from market
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Total Working Capital less Bank Finance
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Detailed explanation-1: -Working capital, also called net working capital, represents the difference between a company’s current assets and current liabilities. Working capital is a measure of a company’s liquidity and short-term financial health.
Detailed explanation-2: -Short-term Sources: The sources of capital available to a business for less than one year are called short-term sources of working capital. Long-term Sources: The sources of capital available to a business for a longer period, usually more than one year, are called long-term sources of working capital.
Detailed explanation-3: -Elements Included in Working Capital Short-term investments a company intends to sell within one year. Accounts receivable, minus any allowances for accounts that are unlikely to be paid. Notes receivable-such as short-term loans to customers or suppliers-maturing within one year.
Detailed explanation-4: -Simply put, Net Working Capital (NWC) is the difference between a company’s current assets and current liabilities on its balance sheet. It is a measure of a company’s liquidity and its ability to meet short-term obligations, as well as fund operations of the business.