--%>

Can a corporation contain too much working capital

Can a corporation contain too much working capital? Describe.
A firm can contain too much working capital if this is losing the chance to invest in high returning fixed assets and if this goes beyond the amount of working capital required for reasonable liquidity needs.

   Related Questions in Finance Basics

  • Q : Financial crisis of India during 1997 I

    I have to explain Financial crisis of India during 1997. Can someone help me in this question ?

  • Q : What is Availability Period

    Availability Period: The time period throughout which an appropriation might be encumbered (that is, committed for expenditure), generally specified by the law making the appropriation. When no particular time is given in financial legislation, the pe

  • Q : Effect of merger activity in the

    How has the merger activity in the past decade influenced the concentration of assets in the banking industry? Over the last decade, the number of commercial banks declined through twenty-one percent and the averag

  • Q : Equilibrium GDP for this hypothetical

    Normal 0 false false

  • Q : Explain the term Balance Available

    Explain the term Balance Available: In regards to a fund, it is the surplus of resources over uses. For budgeting aims, the balance accessible in a fund condition is the carry-in balance, net of any preceding year adjustments, plus revenues and transf

  • Q : Describe benefits of the JIT inventory

    Describe the benefits of the JIT inventory control system? The just-in-time (JIT) inventory control system lowers inventory carrying costs & tends to raise quality.  

  • Q : Debit or credit Hi this is Shailender

    Hi this is Shailender Ojha i want to know when we receive the sales where we put the sales. in debit or credit column . could you please let me know.

  • Q : Conditions in which warrants value high

    Under what conditions is a warrant's value high? Describe. A warrant's value would be great when the stock price, time to expiration, and/or expected stock price volatility is great.

  • Q : Riskiness of portfolio with very low

    What happens to the riskiness of portfolio if assets along with very low correlations (even negative correlations) are combined? How successfully diversification decreases risk based on the degree of correlation among the two variables in questi

  • Q : Meaning of weakens US dollar in

    What does it mean while the U.S. dollar weakens in the foreign exchange market? While the U.S. dollar weakens in the foreign exchange market one U.S. dollar purchase fewer units of another country's currency. It costs more U.S. dollars to purch