Define Working Capital?

[Good-Person]

Working capital is the amount of money needed to meet up with the day to day production of a business organization. They include cost of raw materials, fuel, transportation. All those recurrent costs that make production possible are classified as working capital.

Working capital refers to the kind of capital that you invest and which is being used by you in the business. This kind of capital is quite important for people and it is equally important for people to have cash reserves.

 

[Pauljonnes1000]

This is the money which is used to fund solely your business. It shouldn't be used to settle anything apart from buying your market stocks. It shouldn't be used to settle school fees or throwing parties. It should be monitored. It should increase and not decrease.