In: Business and Management

Submitted By mikaloy
Words 2237
Pages 9
1. Meaning and Types of Finance:
- Finance is the Art & Science of Managing Money
- Finance is the Art of passing currency from hand to hand until it finally disappears

Types & Sources of Finance
Long Term Sources of Finance

Short Term Sources of Finance

- Finance required to meet Capital Expenditure
- Also, known as Fixed Capital Finance

- Finance required to meet day-to-day Business requirements
- Also, known as Working Capital Finance

2. Working Capital Management:
Working Capital (WC)
Basics regarding WC

Meaning of WC
Working Capital Concept
Factors Affecting WC
Meaning of WC Management
Importance of WC Management

Classification/Type of WC
A On the Basis of Concept

Gross Working Capital
Net Working Capital
(Positive & Negative Working Capital)

Methods of estimating WC

Conventional Method
Operating Cycle Method
Cash Cost Method
Balance Sheet Method

B On the Basis of Periodicity

Fixed / Permanent Working Capital
(Regular & Reserve Margin/ Cushion WC)


Variable Working Capital
(Seasonal & Special Working Capital)

Parag Nalin Doshi


Meaning of Working Capital:
- Working Capital is the amount of Capital that a Business has available to meet the day-to-day cash requirements of its operations
- Working Capital is the difference between resources in cash or readily convertible into cash (Current Assets) and organizational commitments for which cash will soon be required (Current Liabilities)
- It refers to the amount of Current Assets that exceeds Current Liabilities (i.e. CA - CL)
- Working Capital refers to that part of the firm’s Capital, which…...

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