Question

Whatisoperatingcapital,andwhyisitimportant?

Answer 1

Operating Capital is the the capital investment of the company in the current assets and current liability. so investment in current assets and current liability is the required running capital of any company and this is the backbone of any company This capital is also called as working capital of the company this is includes the Cash, Stock , Account receivalbe and payable, short term loans and other short term assets.

So for running of any company we need the all components of operating capital.