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How do you define working capital? What may happen if an organization neglected to manage its working capital? What techniques do you recommend for your organization? Why? Christine
I would define working capital as short term decisions relating to the next one year period which can be reversible. [ Working capital can ensure that the firm can continue its operations, and to see if there is sufficient money flow to satisfy both maturing short term debt and upcoming operational expenses. If an organization neglected to manage its working capital. The organization could make decisions that could cost them if the working capital is not managed right. The organization could be in real trouble. What techniques would you recommend for your organization? I think I would use
cash because it will allow the business to meet the day to day expenses but it could reduce cash holding costs. Inventory can allow for uninterrupted production and reduce the investment in raw materials. Debtors will attract customers that might impact cash flows and cash conversion cycle will off set by the increase revenue and return on capital. ] ]
Expert answered|samth007|Points 93|
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Asked 2/23/2014 12:04:24 AM
Updated 2/23/2014 9:49:14 PM
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This is another copy and paste.
The sources you are providing are not the same sources as you are taking the answers from. Please answer questions in your own words and provide a link to the sources your use. Thanks!
Added 2/23/2014 9:49:14 PM
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