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Introduction to Corporate Finance — Secretarial Practice STD 12 Commerce / Arts — Question

Maharashtra BoardEnglish MediumSTD 12 Commerce / ArtsSecretarial PracticeIntroduction to Corporate Finance4 Marks
Question
Working Capital is also called circulating capital.
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Answer

  • Working capital is required by the business to carry out day-to-day transactions.
  • Working capital helps the firm to maintain sufficient stock of raw material stock and finished goods.
  • Working capital can be funded with short-term loans, deposits, trade credit, etc.
  • It also helps the business to meet unexpected expenses. Thus, it is rightly said that Working Capital is also called circulating capital.

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