2.3.3.2c - Working capital

Explain working capital management and the importance of cash.

Use c - working capital to connect the rule to the data and decision in the question.

This matters because c - working capital determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - working capital to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Working capital is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.