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Acc 2525
Essay specific features
Written by:
Elizabeth R
Date added:
September 17, 2014
Level:
University
Grade:
B
No of pages / words:
2 / 431
Was viewed:
956 times
Rating of current essay:
Essay content:
The decisions involved in Working capital management are short term decisions.
Objectives of working capital management:
The primary objective of working capital management is to ensure that sufficient cash is available to:
• Meet day-to-day cash flow needs.
• Minimize the risk of insolvency...
displayed 300 characters
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Over-capitalization is when there are excessive stocks, debtors, cash; low return on investments and long-term funds tied up in non-earning short term assets. Overtrading leads to growing debtors and creditors, and if unchecked, ultimately to cash starvation. From a company's point of view, excess working capital means operating inefficiencies...
displayed 300 characters
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