a) Why working capital management is important for any organization? b) Explain the different approaches used for current asset investment policies. c) Explain the different approaches used for current asset financing policies.
Subject: Financial strategy & policy
Question No 1
a) Why working capital management is important for any organization?
b) Explain the different approaches used for current asset investment policies.
c) Explain the different approaches used for current asset financing policies.
Working capital refers to the sum of money required to carry out the day-to-day operations of the business. Working capital is maintained as per the operations of the business.
Investment policies refer to the policies which are related to business investments. On the other hand, financing policies are the policies that are related to the procurement of funds and decisions related to the financial management of the business.
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