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What is Working Capital Management Overview about?

This document discusses working capital management and short-term financing. It defines current and long-term assets as well as current and long-term liabilities. It explains the risk-return tradeoff between financing with current vs long-term sources. The hedging principle is introduced, which states that permanent assets should be financed with permanent sources while temporary assets use temporary financing. Finally, sources of short-term credit are outlined, including unsecured sources like trade credit

Author

Rahul Kaushal

Language

EN