Working Capital and Regulatory Bodies

Working Capital and Regulatory Bodies

Working capital and maintenance of government regulations are among the many requirements to maintaining a profitable and sustainable organization. While organizations vary in size from entrepreneurs and start-up companies to well-established business organizations, none have an endless river of funds to keep the business afloat and operating without concern for finances. Most businesses function on limited financial investment and rely on the profitability of the organization to stay viable. The US government has many regulatory entities who work to monitor legal compliance that has been created over the years to build confidence in businesses that are head-quartered here in the Unite States.

Working Capital

“Working capital is a valuation metric that is calculated as current assets minus current liabilities. Also known as operating capital, or net working capital, it represents the day-to-day operating liquidity available to a business” (Unknown, 2005). This definition of working capital highlights the focus on current assets and current liabilities. Balancing and management of assets and liabilities of the company are the foundation for the prosperity and longevity of the organization.

Working capital, for this purpose, represents assets and liabilities which are able