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What will happen if an organization not maintain the
sufficient working capital?
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Answer Posted / 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 |
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