Four Main Components Of Working Capital
Before we get into the components of working management, we need to first understand what working capital is. Working capital is the liquid money that can be spent by the company. It is the money that is not fixed like the land on which the business is done, the equipment and machines required for the business etc. Working capital is, therefore, the capital used for paying salaries of employees, conducting the day-to-day operations of the company etc. Now that you know what working capital is, the four components of working capital are given below. Cash Management Cash exists in two forms: near cash and ready cash. Ready cash is the money that is readily available in the form of notes, coins, bank balances etc. Near cash is the cash that…
