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What will happen if an organization not maintain the
sufficient working capital?
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Answer / h.r. sreepada bhagi
Working Capital to a business is like lubricating oil to a
machine. If the machine is not lubricated it will result in
friction, excessive hear=t, corrosion and ultimately it will
stop working. Likewise, if a business entity has no or
shortage of working capital, it will initially affect the
day today operation and final may result in cessation of the
business itself & there by may lead to the closure of the
company.
| Is This Answer Correct ? | 12 Yes | 1 No |
Answer / vikas vangari
Working Capital is the life blood of business orgnisation.
Working capital is the minimum amount of capital that
requireds to meet day to dya business expenses. for eg.-
purchase, payment of wages, salary, daily expenses. etc.
Working Capital = Current Assets - current Liabilities.
| Is This Answer Correct ? | 10 Yes | 1 No |
Answer / anvesh
working capital is life blood of every organisation.
it is reqired to meet the day to day operations of an
organisation
| Is This Answer Correct ? | 2 Yes | 1 No |
yes i am agree with vikas and sreepadha bcoz the working
capital is like a blood flow in a body.till than that is
flowing body is alive. when it will stop the body will die
likewise having working capital in a organisation is
aliveness of organisation and not having working capital is
a death symbol of an organization.
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / manoj s
If the company is not able to meet the days to days
reqirements, then the company position is too bad...
THE company has to fasten the collection of their debtors
and there products which they are sellin has to be sold
very soon at a profit.
IN order to have a sufficent workin capital
| Is This Answer Correct ? | 0 Yes | 0 No |
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