(a)[2]
Define what is meant by the term ‘working capital’.
(b)[3]
Briefly explain two reasons why the effective management of working capital matters for all businesses.
Business 9609 · AS & A Level · Business finance
Business finance — practice question
Worked solution & mark scheme
This 5-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Sound definition: The capital/finance/money needed to cover everyday operating costs, e.g. raw materials and credit extended to customers. A correct formula (current assets – current liabilities) is also worth 2 marks.” …
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