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What is 'Working Capital Management'. Working capital management refers to a company's managerial accounting strategy designed to monitor and utilize the two components of working capital, current assets and current liabilities, to ensure the most financially efficient operation of the company.
For example, a computer scientist uses a computer to create a program; his capital is the computer he uses. On the other hand, a chef uses pots and pans to deliver a good and a service. The pots and pans are the chef's capital. Entrepreneurship combines these factors of production to earn a profit.