741197
Description
Mind Map by Shahid Musthafa, updated more than 1 year ago
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Created by Shahid Musthafa
over 11 years ago
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C: Working Capital
Management
- Over trading
- A situation in which a company is growing its sales
faster than it can finance them. This usually leads to
enormous accounts payable or accounts receivable
and a lack of working capital to finance operations.
- Many businesses become insolvent because they try to accommodate
everyone who wishes to purchase their products. This ultimately leads to
not being able to pay for the financing costs used to produce the goods.
- Many businesses become insolvent because they try to accommodate
everyone who wishes to purchase their products. This ultimately leads to
not being able to pay for the financing costs used to produce the goods.
- A situation in which a company is growing its sales
faster than it can finance them. This usually leads to
enormous accounts payable or accounts receivable
and a lack of working capital to finance operations.
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