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BUSINESS ADMINISTRATION BUSINESS ADMINISTRATION UNDERGRADUATE PROJECT TOPICS

EFFECTIVE WORKING CAPITAL MANAGEMENT & CORPORATE PERFORMANCE IN THE PAINT INDUSTRY.



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EFFECTIVE WORKING CAPITAL MANAGEMENT & CORPORATE PERFORMANCE IN THE PAINT INDUSTRY.

 

 

ABSTRACT

The data for this study was collected through observation, library, research, interviews, and questionnaires administered to the management staff of the course study company, using a pilot survey of the management population.

The data collected were analyzed using a percentage approach were guard the validity and reliability of the hypothesis testing. In effect, the nature of the data analysis is significantly ad statistically computational.

The researcher observes that the company does not grant credit facilities to it’s customers and that inventory level to be maintained is purely subjective.

The liquidity position of the company makes profits. The management of cash and accounts receivable are effective and efficient, though the structure, financing and pattern of working capital usually specified in the text book as norms for assessing soundness are not strictly adhered to in practice. It is also obvious that no firm can survive without an effective and efficient management of it’s working capital especially in this period.

Computationally, the working capital management has a positive influence on the corporate performance position. Thus, quality control and marketing units need total accounting, there is need for corporate appraisal.

The rational of working capital management is on the realization that current assets holding should be increased to the point where marginal returns on increase in such assets are equal to cost of capital required to finance such additions while current liabilities should as much as possible be used instead of long-term debt whenever this reduces the average cost of capital.

 

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EFFECTIVE WORKING CAPITAL MANAGEMENT & CORPORATE PERFORMANCE IN THE PAINT INDUSTRY.


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