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The latter two portions are entirely comprised of questions rather than responses. The solutions to those questions can be found in the IGNOU-provided study materials. To earn high scores and breeze through your test, you must also master these questions.
An Overview of IGNOU MS-41 Syllabus
Working capital (WC) is a financial statistic that indicates the operating liquidity accessible to a company, organisation, or other entity, including governments. Working capital is considered a component of operational capital, along with fixed assets such as plant and equipment. Current assets are equivalent to gross working capital. Working capital is computed by subtracting current assets from current liabilities. An entity has a working capital deficiency if its current assets are less than its current obligations. This is also known as a working capital deficit or negative working capital. A corporation might have assets and profits yet lack liquidity if its assets cannot be easily turned into cash. Positive working capital is essential to guarantee that a company’s operations can continue and that it has enough money to cover both maturing short-term debt and anticipated operational needs. Working capital management entails keeping track of goods, accounts receivable and payable, and cash.
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