Question 5: Working capital

What are the components of working capital?  What is the cash operating cycle? 

What techniques might a small business use to manage its stock/inventory levels? 

What are the potential consequences of over or under stocking in a business? 

What steps should a business take to ensure customers pay invoices on time? 

1. What steps would you take before deciding whether to offer credit terms to a customer? 

 Total:25 marks

 

Answer rating: 100% (QA)

Answer 1 Components of working capital Current Assets These are assets that are expected to be converted into cash or used up within one year They include cash accounts receivable money owed by custom... View the full answer