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Greetings sir,
B)i) I did not understand what does working capital investment policy mean. Nor did I understand the explanation given. I have understood funding policy and its explanation in ii). Is there any specific episode of your lectures covering this ? Or could you explain to me the concept and the case study related to this concept here ?
Specifically: why/how does using a lower level of current assets to generate revenue = an aggressive working capital investment policy. A higher level use of current asset = conservative working capital investment policy.
Did you actually watch all of my free lectures before starting to practice questions in your Revision Kit? The Revision Kit is meant for revision after you have finished studying all of the topics.
Of course investment policy and funding policy are both covered in our notes and lectures.
Investment policy is deciding on what level of working capital to hold (e.g. higher or lower levels of inventory). Funding policy is deciding whether to finance the working capital from long-term or short-term finance.
Thankyou for that clarification and revision.
Why/how does using a lower level of current assets to generate revenue = an aggressive working capital investment policy. A higher level use of current asset = conservative working capital investment policy.
Just answer me briefly then this important question as well.
Thankyou for your patience.
I have watched through all your lectures not very recently but a while back; but the chapters were so many, I tend to forget some of them at times. Apologies. Bear with me.
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