Q. What is the significance of Working Capital?
Meaning of Working Capital: - Working capital management is an significant aspect of financial management. In business money is essential for fixed assets and working capital. Fixed assets comprise plant and machinery, land and building, furniture and fittings etc. Fixed assets are obtained to be retained in the business for a long period and yield returns over the life of such assets. The major objective of working capital management is to determine the optimum amount of working capital required. Usually management of working capital means management of current assets.