Question

What are the major tasks in managing working capital and cash flow for international operations? What are the major steps in capital budgeting? For what types of ventures do international managers typically engage in capital budgeting?

Please be breif

Answer 1

Cash flow represents the amount of money entering and leaving the business in a stipulated time frame while working capital accounts for the currently employed assets and liabilities of the business includes operational liabilities. Both these components involve financial well being and strength the business operations. The management of these components involve having accurate records and an effective inventory management system and invest in new innovations without affecting operations.

Capital budgeting is a planning process which helps a company or business determine whether its long term investment is worth the cash funding by analysing its capitalization structure. The different ways of capital budgeting are payback method, net present value, profitability index and internal rate of return.