Accounting questions
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11. What is zero working capital?
12. How would you define zero working capital?
13. When would this methodology be used?
14. Would this model be applicable to all organizations? Explain.
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Solution Summary
The expert defines zero working capitals. The response addresses the queries posted in 275 words with references.
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The response addresses the queries posted in 275 words with references.
// Before scripting about the 'zero working capital', we will discuss its definition. We should know the concept of working capital. The information given by me will assist you to define the zero working capital and understand about its significance in the Organization. //
11.
The zero working capital is considered as a low level of working capital. The creditors earn an extremely low rate of return with the zero working capital. The zero working capital can be considered as more current liabilities than current assets. This is because the management tends to invest the funds in various opportunities by keeping ...
Education
- MBA (IP), International Center for Internationa Business
- BBA, University of Rajasthan
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