After reading this article you will learn about:- 1. Meaning and Concept of Working Capital 2. Classification of Working Capital 3. Factors 4. Sources 5. Uses. Meaning and Concept of Working Capital: Working Capital refers to a firm's investment in short term assets-cash, short term securities, accounts receivable and inventories. Net Working Capital is defined as current assets minus current [...]
After reading this article you will learn about over and under capitalisation of a company. Over-Capitalization of a Company: An over capitalized firm can be compared to a (fat) man who has got fat more than required and suffers from variety of diseases. Over-capitalization implies that the total capital of the company (owned capital plus borrowed capital) is in excess [...]
This article throws light upon the top twenty sources of finance for a company. The sources are: 1. Preference Shares 2. Debentures 3. Ordinary Shares 4. Non-Voting Ordinary Shares 5. Redeemable Equity Shares 6. Stock 7. Retained Profits 8. Loan Capital 9. Sale and Lease Back 10. Equipment Leasing 11. Hire Purchase 12. Term Loans (Straight) 13. Term Loans 14. [...]