Gujarat BoardEnglish MediumSTD 12 CommerceOCMFINANCIAL MANAGEMENT3 Marks
Question
“Working capital is multi-formed.”-Discuss the Statement.
✓
Answer
Working capital is employed in current assets and its form is ever changing. e.g. from cash to raw material $\rightarrow $ semi finished goods $\rightarrow $ finished goods and finished goods are sold on credit $\rightarrow $ debtors $\rightarrow $ recovery from debtors and cash. Thus working capital remains in business at different levels in the different form. Its form changes every time so it sis called “Multi-formed.”
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