Appropriate Management of Working Capital
Evolution of mankind has greatly influence the way good and services are exchanged in the market where old methods are replaced by new one. There are many factors that have changed the way people conduct business, in this case, environmental factors have played a major role. There is no single person in the world who is self-sufficient, everyone need each other to satisfy his/he needs in one way or the other. The economic status of any given society is determined by the way it interacts with other society in exchange for good and services.
With improved industries production has been improved in a significant way that has rendered many people to engage in various production. One of the challenges that many companies experience is the availability of capital for the starters and working capital management for the already established companies. companies have come to realize growth and development that was not there before due to improved technology where production have been increased to ensure maximum income. Without human capital into consideration, companies cannot experience the development of any kind, therefore, it is important for the company to put into consideration its input.
Income in the company is important as it is brought about by the way capital invested generate income as a reward that determines the economic status of the company. Technological evolution has rendered to changes in the sector of finance such as mode and media used in exchange of good and services. Changes in the sector of information technology has to lead to development of the banking sector to a more user-friendly institution. Technology advancement has promoted many services to be user-friendly and efficient hence promoting growth and development of various institutions. Proper accountability of finance and other resources in a company is crucial to ensure the survival of the company.
Understanding how much company spent on its daily expenses over how much income it generate is crucial, since companies are able to have proper financial planning. Evaluation of various treads of good and services in the market gives a good information source for company to come up with proper planning strategies. Financial the crisis has always been a challenge to the human being, moreover, the vast changes of technology have rendered to be of great help due to updated information on how to deal with the crisis. nevertheless, studying the behavior of the various market structures in the market is usually easy due to the presence of vast information available on the online platform. Advocating for financial literacy has been easier due to availability of vast information on the internet .
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