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What are the different Kinds of Working Capital Assignment?
Before we go in to the details of the kinds of working capital, it is importance for us to know what working capital really is. In simplest form of words, working capital can be defined as capital that is needed for the day to day function for a business to run properly. It will include the investments that a company consciously makes to run its business properly like the machineries, lands, buildings, raw materials, spares, finished goods, bank funds, fund in hand and extension of credits to their debtors.
Our team of Kinds of Working Capital Assignment Help has explained many students globally about its kinds. Here is the synopsis of subject matter for ease of understanding:
Kinds of working capital: there are two kinds of working capital which are clearly defined below:
1. Working capital PERMANENT: The capital used every day for any business to run properly but with the minimum amount of expenditure or working capital for raw materials, finished goods and balance of cash. It is used for a longer period. And is stable.
2. Working capital TEMPORARY: It can be defined as the capital needed to meet the needs or requirement for demand of a season and also for fulfilling some special reasons. This is known as variable of the working capital. It is used for a shorter period. And for this nature it has many fluctuations.
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