Bookmark and Share

 

 

 

 

LEARN
MANAGEMENT2
.com
Home | Business Management Concepts | About LearnManagement2
Business Presentations
| Business Management Clip Arts| LearnManagement Blog

HOME OF BUSINESS MANAGEMENT THEORY AND CONCEPTS

For Business Management Learners Across The Globe

 

 

WORKING CAPITAL

Introduction

Working capital is the money businesses use to pay their bills each day. Working capital does not include money used to buy fixed assets (machinery and equipment). Money used to buy fixed assets is called capital expenditure. Working capital is used to pay for things like:

    • Stock
    • Materials
    • Wages/Salaries
    • Telephone Bills

     

     

    • Heating Bills
    • Water Bills
    • Business Rates
    • Broadband
    • Rent Payments

Businesses need to ensure that they have enough money or liquidity to pay for their daily bills. If a business does not have sufficient liquidity it may face eviction, utilities being cut off, no stock and loss of reputation.

Next

 

 

Studying Marketing Visit www.learnmarketing.net

free hit counter