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Working Capital Management: Unit: 5
Working Capital Management: Unit: 5
Working Capital Management: Unit: 5
Management
UNIT : 5
MEANING OF WORKING CAPITAL
Certain amount of
Working Capital is in
the field level up to
a certain stage and
after that it will
increase depending
upon the change of
sales or time.
NEEDS OF WORKING CAPITAL
Purchase of raw materials and spares: The basic part of
manufacturing process is, raw materials. It should purchase frequently
according to the needs of the business concern. Hence, every business
concern maintains certain amount as Working Capital to purchase raw
materials, components, spares, etc.