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Which funds required in day to day operations of business

Posted by Shruti Gupta 5 years, 9 months ago

CBSE > Class 11 > Business Studies

1 answers

Gaurav Seth 5 years, 9 months ago

Working capital is required in day to day operations of business

Working capital is required by a business for the purchase of raw materials and for meeting day-to-day expenses such as wages, salaries, rents, taxes, interest, etc. It may be defined as the capital invested in the working or current assets, such as raw materials, semifinished goods, finished goods, debts recoverable from the customers to whom goods have been sold on credit, and so on. Working capital is also referred to as the circulating capital or revolving capital.

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