Working capital
What Working capital means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Working capital
Check what you remember
Read the wording for your board, then hide it and explain Working capital in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
The funds required for day-to-day business operations, calculated as current assets minus current liabilities.
Topics that use Working capital
- The role of the financial sector (Pearson Edexcel A-Level)
Related terms
- Capital allocation
- Credit rating agencies
- Financial intermediation
- International trade
- Liquidity
- Medium of exchange
- Payment systems
- Saving and borrowing
Using Working capital in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
Practise Economics B questions
Create a free account to answer exam-style questions on this topic and get feedback on your answers.
A week of Premium from your first lesson · Then the free plan continues · No card, no charge