explain the importance of working capital in a business. what do you understand by the working capital cycle?
602391
The project cost is fixed capital plus an working capital cycle.The working capital cycle may be the operating cost required for an year/period.In project financing, the scale of finance is determined as the capitalised cost which include fixed assets plus the working capital required for an year or a stipulated period or whichever is appropriate
237773
sounds like someone has an economics exam coming up. \nProbably has something to do with employment rates and consumerism.   the ability of the population to keep the economy rolling, by having positive cash flow.
303850
Bookkeeping is very important in a small-scale business for tracking cash flow and profit and loss. It does not have to be complex and could in most cases be done on one ledger. Without the information of turnover and expense the business owner would have an unclear view of the true value of the business.
412703
yes. u need to have surity. also have a business plan...let it be realistic.i mean both in terms of time and resources. show the bank why is it worth investuing in your proposed business...when is that businees going to reach BEP and how r u going to do it...
42697
you need money to start a business\nyou do not need money to start working......\n\nwork for someone and think about what business to start.\n\nstart the business part time then when you are making money go full time\n\nwhen you work for someone..they provide the insurance and benefits for you, but you are at their beck and call..when they want you to work you work doing what they want...\n\nwhen you work for your self you provide the insurance and other benefits and you work when you want to work...which is a lot...and you usually have to do what the customer wants any way..\n\ngood luck
876104
D) is the answer that the question-writer is looking for - it is the only one that requires you to look at the marginal cost of capital.  \n\nHowever, this question in practice could be a trap for the well-traveled young aspiring investment banker.  What is a marginal cost of capital?  The cost of obtaining more money from equity or debt investors to be invested into a project.  However, this presumes a system based on capitalist or semi-capitalist notions.  If you were to be investing on behalf of the government in, say, Cuba or Venezuala,  you would not be looking at the cost and benefits in terms of a return on capital, but rather the effect of the investment on the broader economy & society, which may or may not be captured in returns to the capital provider.  As every Wall St employee knows: "From each according to their ability, to each according to their needs".\n\nAnother example of a system where investment decisions should not be made based on investment costs and benefits is in a situation where the capital is free.  This can occur as a result of a government desire to stimulate investment in a certain area or when a management team is not responsive to the needs of investors, a situation in which the management expectation of shareholder return is zero.  In  this situation, investments would be ranked by the return they provide to management as opposed to the capital providers.  Consider for example the returns created for the shareholders of Tyco when their CEO invested in a $10,000 shower curtain with their capital.\n\nFinally, the other point to bear in mind is the range of potential returns in a investment portfolio.  If you are making a series of investments, it may not be wise to emulate, say, Amaranth and place all your eggs in one natural-gas dependent basket.  Instead, spreading your investments across a range of companies, industries, markets and currencies is corporate finance's only "free lunch" where the trade off between risk and return demonstrably improves.
800145
Smaller businesses are crucial to the health of the economy.  They employ more people than the large businesses. The people that own and operate small businesses invest a lot of time, talent, and resources to make it a success. They don't always get a lot of publicity, like the large companies do.\n\nThey provide goods and services to the marketplace and they buy goods and services that they need to run the business. They and their employees pay taxes.
736089
How can you do business without being able to understand things like money, salaries, projections, sales, taxation, etc all of which require a high degree of numerical competency and if you have anything to do with making anything all the engineering that is done to keep the factory going requires some wide mathematical knowledge. If all you want to do is be a parasite and not contribute anything to the country then give up Maths and become a management slob
572776
"The financial sector mobilizes savings and allocates\ncredit across space and time. It provides not only payment services, but more importantly products which enable firms and households to cope with economic uncertainties by hedging, pooling, sharing, and pricing risks. An efficient financial sector reduces the cost and risk of producing and trading goods and services and thus makes an important contribution to raising standards of living."\n\nSo there - in short - if we didn't have one - we would have to work in real money (ie no loans) which could prevent us (or businesses) from investing in projects until the money was saved...\n\nAlso the whole insurance market wouldn't exist which could have devastating consequences for households and businesses.
1136609
There is a huge difference between  bankers and venture capitalists. And I'm not just referring to the cost of borrowing so tread cautiously here.\n\nBefore I can provide you with advice I need a little more information. How long have you been in business?  About how many people work there?  Why do you need the money?\n\nJust a quick note " fund some of our operations " might suggest you need money just to keep the business open. If this is not the case it may be better to delete this part of your question.
934747
I think tranactions reports of gains/losses always important See GAAP,,general accounting principles. Depends on which fiscal period they have been reported.
103431
Businesses issue stock to raise capital.\n\nAdvantages of issuing stock:\n\nA Company can raise more capital than it could borrow. \nA Company does not have to make periodic interest payments to creditors. \nA Company does not have to make principal payments.
101779
The greatest and rarest resource on earth.  The ability to invest all your money and time on uninsured future profits.  Meaning just because you start a business, doesn't mean you are guaranteed anything.  An owner has to have so many talents it is rare to see a start up business thrive over the long run.  \n\nFirst they need an idea or nitch in an existing market.\n\nSecond they have to raise capital to buy a building and employees and office supplies and ...\n\nThird they need the ability to do every job required in the business or the ability to find qualified people to fill the roles.\n\nFinally they need the forethought to expand or contract their business to maximize profits. \n\nWithout all these and more their business will fail.
115897
The best way to get working capital depends on your company, and the usage of that capital. As mentioned before you can issue bonds and or stock, however that is not practical for a newer company that is not recognised. You can look into obtaining an SBA 7(a) loan. Under this loan you can obtain a building, equipment, and working capital. However you will be required to come up with an infusion of your own funds.
846288
I do more work, I own the business, I worked  hard to own it.  I make the decisions that decide whether it grows or tanks.  These reasons and so many more are why I make more than my employees.  My employees are important to me, and dedicated ones are rewarded well in my business, but since I put up the initiative and work to make the business I make more moola.  This is pretty obvious reasoning.
991007
Upto what extend i have understood that question i will clear that in this way there are five basic items in accounting around which the whole accounting cycle travells\n\n1. owner's equity\n2. liabilities\n3. assets\n4. incomes\n5. expenses\n\nif u have more question regarding that please write clearly what u want
335784
i have worked for a few start-ups. here is some of what i have seen as issues:\n\n-lack of adequate capital funding to start and maintain the business\n-lack of cash flow to sustain the business\n-lack of customer demand for product being developed/sold