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Why is working capital needed?

Answer and explanation

Correct answer: दैनिक खर्च और छोटे भुगतान चलाने के लिए

Working capital supports the day-to-day operating cycle of a business. It can finance inventory, wages, utilities, transport, routine purchases and other short-term payments until sales cash is received. Buying a building is normally a long-term investment, while registration is a specific administrative cost; neither represents the main purpose of working capital.

Related tags

Working CapitalFinanceConceptNature And Importance Of Business FinanceConcept Nature And Importance Of Business FinanceSources Of Business FinanceBusiness StudiesClass 11 Mcq

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