The importance of working capital
Not what you're looking for?
Why is working capital important to a business? What are the consequences of too little working capital?
Can a business have too much? If so, what are the consequences of too much working capital?
Purchase this Solution
Solution Summary
Positive and sufficient working capital is needed for a business to operate at its fullest capacity. However too little working capital can indicate a shortage in liquidity, even if the business is making money. Also too much working capital can mean that the company is not sensibly investing its money or there is more inventory than needed.
Solution Preview
Working capital is the amount of a business that can be applied to its operations. It is the amount of current assets that exceed current liabilities. Positive and sufficient ...
Purchase this Solution
Free BrainMass Quizzes
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.