Operating Capital
Content
Definition
Operating Capital refers to funds used to support the day-to-day operations of a startup, covering expenses such as rent, payroll, and utilities.
Usage and Context
Frequently asked questions
- What is the meaning of operating capital? Operating capital is the money a business uses to fund its daily operations, including expenses like rent, salaries, and utilities.
- What do you mean by operating working capital? Operating working capital is the capital required to cover a company`s short-term operational needs, such as inventory, accounts receivable, and accounts payable.
- Which capital is used for day-to-day operations? The capital used for day-to-day operations is called operating capital, which funds regular business expenses and activities.
Benefits
Operating capital ensures a business can run smoothly by covering essential expenses, maintaining liquidity, and supporting daily operations.
Conclusion
Operating Capital is essential for funding the day-to-day activities of a startup, ensuring it can meet short-term expenses and maintain smooth operations.
