2 pages/≈550 words
Business & Marketing
Finance for business: Working Capital Management Techniques (Essay Sample)
Write a 2-4 page paper (APA format) on the following topic: “Discuss the different Working Capital Management techniques. Which ones do you prefer as a Finance Manager? Why? source..
Working Capital Management Techniques
WORKING CAPITAL MANAGEMENT TECHNIQUES
Working capital that is also called net working capital can be defined as a measurement of the current assets of a business. This happens after deduction of short-term liabilities that are classically classified as short term (Mathur, 2003). It is also called operating capital at times and this would mean valuation of assets that an organization or a business has on hand to build and manage business. The management techniques for the working capital are very efficient tools in the management of effectual and efficiency of working capital. The focus is usually on the current assets since the current liabilities crop up because of current assets only. Thus, managing automatically managed current liabilities. There are distinguished management techniques for the working capital and some, for particular reasons are preferable for finance managers.
All the management techniques for the working capital try to search for optimum stage of working capital, since both shortage and excess of working capital engrosses cost to the trade. The main winning condition or the main goal for any business manager is looking for the most favorable of working capital. The various techniques that is applicable in finding the most favorable stage of the work...
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