A STUDY ON WORKING CAPITAL MANAGEMENT

In Progress Posted 3 years ago Paid on delivery
In Progress Paid on delivery

Banking has been defined by Banking Regulation Act of 1948 as “It is accepting money for the purpose of lending or investment of deposits from the public, repayable on demand or otherwise and withdrawable by cheque, draft, orders or otherwise.”

Although, from this definition it appears that banking is a very complicated process , it had been regarded as the main pillar of the economyof a nation which controls the financial [login to view URL] this complicated process to run the bank smoothly it is one of the primary duties of a bank to take care of the working capital seriously, because the definition of working capital is defined as “The firm’s total investment in current assets or assets that it expects to be converted into cash within a year or less”.

Management of working capital includes consideration for net working capital, by managing current assets to current liabilities. This means organizations have to factor in a certain amount of risk-return trade-offs in the decision making process. If an organization does not increase their net working capital enough, they run more of a risk of struggling to pay their bills/dues. But if they increase the working capital too much, they are taking away from the profitability of the organization. In order to avoid problems, organizations have to make good decisions which overlap, between current assets and how current liabilities are used.

Typing Word Microsoft Office

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7 proposals Remote project Active 3 years ago

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