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A business requires funds for day to day working. This fund is called as working capital fund. This helps a business enterprise to borrow raw material, convert it into finished goods and sell it and get back funds. This is the cycle of working capital. However you may try a minimum of this capital remains in the business in some form or the other.
The minimum level of working capital that is required to keep the cycle going on is called as core working capital. It is permanent part of the business. It can be used for funding long term assets because of its fixed permanent nature.

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What is meant by core working capital?

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