J. Immanuel Nallathambi Knihy

Working capital management is a significant fact of financial management due to that it plays a pivotal role in keeping the wheels of a business enterprise running. Working capital management is concerned with short-term financial decisions have been relatively neglected in the literature of finance. Shortage of funds for working capital has caused many businesses to fail and in many cases, has recorded their growth, Lack of efficient and effective utilisation of working capital leads to earn low rate of return on capital employed or even compels to sustain losses. The need for skilled working capital management has thus become greater in recent years.

Business environment is the sum total of the environmental factors which provides an atmosphere for business. It has a direct relation with every business organisation which operates in it. Obviously the effectiveness of interaction of the enterprises with the environment primarily determines the success or failure of the business.

Hire purchase is a method of selling goods. In a hire purchase transaction the goods are let out on hire by a finance company (creditor) to the hire purchase customer (hire). The buyer is required to pay an agreed amount in periodical installments during a given period. The ownership of the property remains with creditor and passes on to hirer on the payment of last in installment.

A market is defined as the sum total of all the buyers and sellers in the area or region under consideration. The area may be the earth, or countries, regions, states, or cities. The value, cost and price of items traded are as per forces of supply and demand in a market. The market may be a physical entity, or may be virtual. It may be local or global, perfect and imperfect.