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What is Working Capital?

A business requires different types of capital in order to operate. Working capital is often considered to be the most significant types of capital; it is claimed that the amount of this can determine the success of the company. Working capital is a type of liquid asset that can be used to build a company. The amount of working capital available to a company can be an amount that is positive or minus; in other words a company can have less than zero working capital. If a company has more debts than current assets then this will mean that they have a working capital that is a minus number.

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