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The Role Of Working Capital Management As A Tool Effectiveness In The Nigeria Bank
[A CASE STUDY OF UNION BANK OF NIGERIA PLC, ILORIN]
CHAPTER ONE -- [Total Page(s) 2]
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CHAPTER ONE
1.0 GENERAL INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The prevailing economics situation is a resulting largely from extensive mismanagement of the country; resources have made issues of management, one of the paramount importance in the business world where the financial organization sector has a pervasive influence: the management of working capital cannot be overemphasized.
Working capital management can be said to the life blood for the sustenance of any organization the study of financial organization is incomplete without an in-depth, thoroughly and critical analysis of techniques of its working capital management.
Working capital is concerned with:
(i) Financial of working capital component
(ii) Investment in asset
(iii) Usage of working capital
It is the art of science of planning organization directing, controlling and utilization of working capital component as well as determines the appropriates mix of working capital management. It can also defined as that aspect of managerial finance or management accounting, which is concerned with the activities involved in sourcing financing and investing in the components of working capital.
In managing working capital, companies separate current execution into their component units for policy formulation and execution. This is because are of different nature, which makes it imperative that they will be considered and managed under a unique appropriate.
1.2 STATEMENT OF THE PROBLEM
The strategic role that working capital management plays in all organization cannot be over-looked.
This implies that working capital management is the main pillar of the sustenance of any financial organization.
The study or organization financial statement in incomplete without a thoroughly and perfect understanding of the techniques of its working capital management.
In examine the management of working capital answers to the following questions.
i. Does effective stock management increase organization performance?
ii. Does cash management enhance business survived
iii. Does the debtor’s management increase business sales and profit?
iv. Why is the need to invest incurred assets?
v. How many inventories are to be carried out and how de we get funds in pay for them?
vi. What should be the proportion of long term and short term funds to finance current assets?
vii. How the working capital management if finance and organization?
viii. How many funds to finance should be invested in each type of current assets?
1.3 JUSTIFICATION OF THE STUDY
Working capital management has been identified an essential area in efficient management of the company. The failure to plan or forecast working capital level and related cost to the basic reasons for approach. Though with an objective therefore, the ultimate aims of working capital are:
i. Maintenance of adequate level of working capital allow for smooth operation.
ii. To prevent stock – out
iii. Maintenance of adequate cash position to keep the firm liquid and to use cashes in a profitable ways.
iv. Management of adequate mix of working capital components the success of working capital management depend upon the knowledge of cash flow position of the companies, the knowledge of cash flow position of the companies, the various components of the working capital from the basic of this project wish to subsequent chapters. The failure of a product or the entire company.
Therefore the problems of founds management have always been of great concern to the financial managers of both private and public co-operation all over the words they is to show the merit of the working capital as a tool for business survival, to serve as spring banned for financial organization to produce answers for their current problem of funds management.
CHAPTER ONE -- [Total Page(s) 2]
Page 1 of 2
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ABSRACT - [ Total Page(s): 1 ]ABSTRACTThis work of project based on the working capital management as a tool for business survival is classify into five different chapters. Which the chapter one based on the general introduction, background of the study, statement of the problems justification of the study and objective of the study, scope of the study and plan of the study.While chapter two relies on literature review with sub-division of working capital management working capital circle, component, cash management importan ... Continue reading---
