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Adequate working capital is when the owner of the business has money to run the business on a day to day basis.

Inadequate working capital means that the owner of the business has no money to run the business on a day to day basis and will therefore force the owner of the business to go in for an overdraft.

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Q: What is adequate and inadequate working capital?
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Related questions

What is the antonyms to adequate?

Inadequate


What is prefix of Inadequate?

The prefix is in.


What is a correct prefix to add to adequate?

"In" as in "inadequate," meaning less than adequate or lacking.


Why does a firm need to maintain an adequate amount of working capital?

An adequate amount of working capital is needed within a firm so that everyday expenses can be taken care of. Electric bills, payroll, and rental payments have to be paid to keep a firm in business.


What is the prefix for adequate?

Un


What is the importance of working capital for a manufacturing firm?

Working capital is the life blood and nerve centre of a business. No business can be run successfully without adequate amount of working capital. The advantages of maintaining adequate working capital are as follows:Continuous Production: Adequate working capital ensures regular supply of raw materials and continuous production.Solvency and Goodwill: Adequate working capital enables prompt payment to creditors. This helps in creating and maintaining goodwill.Easy Loans: A concern having sufficient working capital enjoys high liquidity and good credit standing. Hence it can secure loans from banks and others on easy and favorable terms.Cash Discounts: Adequate working capital enables a concern to avail cash discounts on the purchases, leading to a reduction in costs.Regular Payment of Expenses: A company which has ample working capital can make regular payment of salaries, wages and other day-to-day commitments. Such prompt payment raises the morale of employees and increases their efficiency. As a result, costs are minimized and profit increases.Exploitation of Market Conditions: A concern with adequate working capital can exploit favorable market conditions. It can buy its requirements of raw materials in bulk when the market price is lower. Similarly, it can hold stock of finished goods to realise better prices.: Adequate working capital enables a concern to face business crisis such as depression because during such periods there is much pressure on working capital.High Return on Investments: Adequacy of working capital facilitates continuous production and effective utilization of fixed assets. Because of this, the concern is able to generate more profits and ensure higher return on investments.-By Kuldeep B. Shukla


What is another word for less than adequate?

Insufficient, inadequate, sketchy, poor, lacking, or incomplete. Those words mean adequate.


What is a correct prefix to add to correct?

"In" as in "inadequate," meaning less than adequate or lacking.


Is aus schooling adequate?

in some ways it is inadequate but i think that the teachers could try harder


What is the advantage of maintaining an adequate working capital in a small business?

The advantage of maintaining an appropriate amount of working capital is the ability to take advantage of opportunities that exist. If the company doesn't have this money, then the competition may take advantage and gain more market share.


Why is Answerscom so inadequate?

Not all answers are inadequate. These questions are answered by the public, so some people could just say stupid answers but some are quite adequate


How does adding the prefix In change the meaning of the word?

Adding the prefix in makes it not. For example inadequate. It means NOT adequate.