Question

Needs for operating funds include ______. (Select all that apply) Multiple select question. controlling credit operations increases in stock price acquiring needed inventory making capital expenditures

Answer 1

Operational fund needs are simply known to be the amount one needs to keep current asset investments afloat. Needs for operating funds includes;

• Making capital expenditures
• Acquiring needed inventory
• Controlling credit operations

Companies often create their production cycle using control criterion that is affected by inventories, customer loans and basic cash needs.

Operating funds is used by firms to finance their purchasing program. The Key components to financial sustainability are;

• Access to Capital
• Profitability 
• Reporting
• Planning

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