Business A-Level
Working Capital Management
What Working Capital Management means in Business A-Level, as defined for OCR.
Definition of Working Capital Management
The optimization of current assets and current liabilities. This involves managing the trade-off between holding high levels of inventory (to meet demand) and maintaining cash reserves (to meet short-term obligations).
Topics that use Working Capital Management
- Management Accounting: Cash-flow (OCR A-Level)
Related terms
Using Working Capital Management in the exam
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