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Working Capital Importance

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Why is working capital important? Which stakeholders are affected by working capital?

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Working capital is the difference between an organization's assets and liabilities. In many cases, organizations that appear to be profitable must stop trading because they are unable to meet their short-term debts. In order to remain successful, it is essential that a company manages its working capital ...

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Importance of Working Capital Management

Explain why working capital management has become increasingly important in the current business environment. Provide at least two examples of organizations that have good working capital management policies, and two examples of organizations with poor working capital management policies. Be sure to explain why the policies of your selected organizations are effective and ineffective.

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