CHAPTER- 11.1 INTRODUCTION ABOUT THE PROJECTABOUT THE STUDYMeaning of Working Capital:
Capital require for a business can be classified under two maincategories, (a).fixed capital, (b).working capital.Every business needs funds for two purposes for its establishmentand to carry our it’s day-to-day operations. Long-term funds arerequired to create production facilities through purchase of fixed assets such as plantand machinery, land, building, furniture etc.
In the words of shubin, “working capital is the amount of fundsnecessary to cover the cost of operating the enterprise”.
CONCEPT OF WORKING CAPITAL:
There are two concept of working capital:(A).Balance sheet concept,(B).Operating cycle or circular flow concept.