A Study on Pros and Cons of Working Capital Management



Finance is the nerve center of Economic activity. It plays an important role for the survival and growth of business. Capital has to be utilized effectively to increase the rate of development and raise the efficiency of the business unit.. In these days of speedy industrialization it is generally very difficult to provide the working capital requirement. The capital formation includes both fixed capital and working capital. Finance invested in purchase of fixed assets and installation of machines are considered as fixed capital. The finance used for the purpose of meeting day-to-day operations of a firm is called working capital. This study is concerned with problems involved in working capital like estimation of working capital and provision of working capital at the time it is needed and to find out the source and application of working capital and efficient use of funds

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