Question 1(a)(ii)
[Maximum number: 3]
Explain the term working capital.
CAIE A-Level Business 5.1.2 Working capital
Practise defining working capital and applying current assets, liabilities and expenditure choices to business survival decisions.
How this is tested
- explain working capital as current assets minus current liabilities
- distinguish capital expenditure from revenue expenditure using case wording
- evaluate whether poor working capital management explains small retailer failure