Q.What is meant by Working Capital?

Working capital is the second broad type of financial need studied alongside fixed capital in this AP BIEAP Commerce chapter.

Working capital refers to the money a firm needs to finance its short-term, day-to-day operating activities, as distinct from its investment in long-term fixed assets. It covers expenditure on raw material, wages and other routine operating expenses, the cost of holding stocks of raw material, work-in-progress and finished goods, and the funds tied up in amounts receivable from debtors until customers actually pay for goods bought on credit. …