What is meant by the terms working capital? What are the components of working capital? How does management decide the correct amount of working capital? In your opinion, what is the most important element of working capital? Why?

In the following discussion question, you will examine the short-term financing needs of the

In the following discussion question, you will examine the short-term financing needs of the

organization.

What is meant by the terms working capital? What are the components of working capital? How does management decide the correct amount of working capital? In your opinion, what is the most important element of working capital? Why?

Discussion Question 2In this discussion question, you will analyze the effects of short-term financing decisions on the organization.

How does the organization “manage” the short-financing needs of the organization? How do working capital policies affect the short-term financing needs of the organization? Should all short-term assets such as accounts receivable and inventory be financed with short-term financing? Why or why not?