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Q » Explain working capital and its importance.
06 Dec, 2025
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A » Working capital represents the difference between a company's current assets and current liabilities, serving as a measure of its short-term financial health and operational efficiency. It is crucial as it enables businesses to cover day-to-day expenses, manage inventory, and fulfill financial obligations. Adequate working capital ensures stability and flexibility, allowing companies to invest in growth opportunities and navigate economic fluctuations effectively.
06 Dec, 2025
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