11. Working Capital Management

Question 1

11. What are three types of capital used in a business?

Answer 1

Fixed (fixed assets)
Growth (For new projects)
Working (Cash, etc)

Question 2

11. What is ‘Working Capital’ made up of?

Answer 2

Current Assets - Current Liabilities

Mostly Inventory + Accounts Receivable - Accounts Payable

Question 3

11. What are the 4 common Inventory control models?

Answer 3

Economic Order Quantity model EOQ
Reorder point model (also consider safety stock cost)
Just-In-Time JIT
Total Quality Management TQM