Title: Nature, Scope, Classification of Working Capital Management
Headings: Nature, Scope, Classification of Working Capital Management
Nature, Scope, Classification of Working Capital Management
Table of Contents
Meaning of Working Capital Management
Classification of Working Capital Management
Classification/ Approaches of Working Capital Management:-
Scope of Working Capital Management
Nature of Working Capital Management

Content: Proper management of working capital will lead to availability of sufficient funds at all times. Business will receive regular supply of raw materials from supplier by paying them on time which will help in continuing production activities regularly. Improves business solvency: Business managing their working capital efficiently are able to maintain proper liquidity. It will improve their cash management and will reduce their dependency on external financing as large amount of funds is tied up in working capital. Management of working capital will enable them in paying all short-term debts and operating expenses on time. Ability to face crisis: Efficient management of working capital enables business in facing emergency situations such as depression. It ensures proper availability of funds at all times so that business can easily face time of crisis or peak demand where they need to boost up their production. Increase creditworthiness: