Adequacy Or Inadequacy Of Working Capital: Its Importance And Implication.

INTRODUCTIONThe primary aim of establishing or going into business is to optimize profit and as well as to ensure continuity of that business concern. When one person (sole trader ) of group of person (partnership of companies limited by shares or guarantee) intends forming a business entity he will need both fixed and current assets to facilitate a smooth take off, these fixed and current assets will by funded from both long term liabilities and current liabilities (or capital) as the case may be.   On formation, the business as an entity will be provided with fixed assets, such as…