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: Working capital management manages all operating expenses of a business organization. It regulates all funds needed for the purchase of raw materials, spare parts and payment of wages and other daily expenses. Proper management of working capital ensures that all required resources are frequently purchased as per the business need. Avoids funds crisis: It ensure that there is no situation of fund crisis within business organization. Working capital management focuses on maintaining an optimum level of funds at every point of time. All business capital is invested into adequate assets that enhance the cash management thereby maintaining proper liquidity ratio. Keep business moving: Working capital management plays an efficient role in keeping the wheel of business always moving. Right amount of cash is always available to meet the day-to-day expenses leading to uninterrupted continuation of business.