Working capital is the difference between current assets and liabilities. Current assets include:

Stocks Prepaid Expenses

Cash Accounts Receivable

Current liabilities include:

Taxes Dividends

Short Term Loans Accounts Payable

Page 304 states that The goal of effective working capital management is to ensure that a company has adequate ready access to the funds necessary for day-to-day operating expenses, while at the same time making sure that the companys assets are invested in the most productive way. Although the quote may offer sage advice, is it always the case?

The Task

Your assignment is to create a e argumentative/persuasive research paper given one of the following options:

Option 1. Argue for or against the quote mentioned above.

Option 2. Argue for or against your own version of a quote regarding working capital management.

Option 3. Argue for or against a business decision, organizational plan, business philosophy, policy decision, or concept related to working capital management.