Business Studies (9-1) - 0986 CIE

Working Capital:

Gbogbo ọrọ náà

A business can be profitable on paper and still collapse, because profit is not the same as cash. What keeps a firm alive day to day is working capital, the money available to pay wages, suppliers and bills right now. It is often called the lifeblood of a business.

In this lesson you will learn what working capital is, how it is calculated, and why having enough of it matters so much. You will see how too little working capital causes a cash crisis even in a profitable firm, and how a business can manage it.

Ebumnobi

  1. The concept and importance of working capital

Nkuzi Olu

Gee ntị na nkuzi a na ngwa

Maapụ uche

E seela isiokwu a ka ị hụ otu echiche si ejikọta.

Mepee maapụ uche na ngwa

Kaadị ncheta

Omume ncheta ngwa ngwa n'ihe a na-anwale n'isiokwu a.

Mee omume kaadị ndị a na ngwa

Akwụkwọ Ọmụmụ

Most business failures are caused not by lack of profit but by lack of cash, running out of working capital to pay short-term debts. Understanding working capital explains why a growing, profitable firm can still go bust, and how managers avoid it. It is a favourite exam topic precisely because it separates profit from cash.

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Nnyocha Ọmụmụ

Ekele diri gi maka imecha ihe karịrị na Working Capital:. Ugbu a na ị na-enyochakwa isi echiche na echiche ndị dị mkpa, ọ bụ oge iji nwalee ihe ị ma. Ngwa a na-enye ụdị ajụjụ ọmụmụ dị iche iche emebere iji kwado nghọta gị wee nyere gị aka ịmata otú ị ghọtara ihe ndị a kụziri.

Ị ga-ahụ ngwakọta nke ụdị ajụjụ dị iche iche, gụnyere ajụjụ chọrọ ịhọrọ otu n’ime ọtụtụ azịza, ajụjụ chọrọ mkpirisi azịza, na ajụjụ ede ede. A na-arụpụta ajụjụ ọ bụla nke ọma iji nwalee akụkụ dị iche iche nke ihe ọmụma gị na nkà nke ịtụgharị uche.

Jiri akụkụ a nke nyocha ka ohere iji kụziere ihe ị matara banyere isiokwu ahụ ma chọpụta ebe ọ bụla ị nwere ike ịchọ ọmụmụ ihe ọzọ. Ekwela ka nsogbu ọ bụla ị na-eche ihu mee ka ị daa mba; kama, lee ha anya dị ka ohere maka ịzụlite onwe gị na imeziwanye.

  1. Working capital is calculated as: A. current assets + current liabilities B. current assets - current liabilities C. total assets - total liabilities D. revenue - costs Answer: B
  2. Current assets of $80,000 and current liabilities of $30,000 give working capital of: A. $30,000 B. $50,000 C. $80,000 D. $110,000 Answer: B
  3. Which is a current asset? A. a factory building B. inventories (stock) C. a long-term loan D. machinery Answer: B
  4. A profitable business may still fail if it: A. has too much cash B. runs out of working capital to pay short-term debts C. lowers its prices D. trains its staff Answer: B
  5. Too much working capital is a problem because: A. debts cannot be paid B. idle cash and stock could earn more if invested C. profit falls to zero D. it breaks the law Answer: B

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Ị chọrọ ime ajụjụ ule ọmarịcha gbasara Working Capital:? Budata ngwa Green Bridge CBT iji nweta ajụjụ ule ọmarịcha na nyocha zuru ezu gbasara isiokwu a.

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