Those funds used to acquire current assets are generally referred to as the business's working capital. The net working capital is represented by current assets minus current liabilities. YOU ARE REQUIRED TO ANSWER THE FOLLOWING QUESTIONS WITH REGARD TO WORKING CAPITAL. a. What variables determine the amount of working capital needed in an organization? (5) b. What factors will reduce the length of the working capital cycle? (5) c. What are the possible causes of an increase in inventory levels? (5) d. What possible steps can a company take to improve its cash flow? (5) e. How would you manage working capital? (5)