Discussion:
1. As a hospitality manager, would you want to minimize or maximize working capital? Why? Depending on which one you choose, what are the best ways to achieve your choice?
2. Working capital is basically the amount of cash you need to operate the business and as you said you certainly want to minimize the amount of cash you need. There are a number of ways you could reduce the amount of cash you need to run your business. Can you think of some ways to do that?
3. Hospitality Financial Management on p. 95 (Ch. 4) identifies several factors that contribute to the amount of working capital needed to operate a business. Pick two factors that you feel are the most important. Why these factors are critical in determining how much working capital is needed for the business?