Question

Alistair is the owner of a small business unit. He has set aside funds to finance the day-to-day activities of the business. He tries to use these funds judiciously and any surplus from these funds is used to take care of unexpected opportunities. Having a substantial fund of this nature also helps his business to get higher credit. What is this fund called?

Answer 1

Working Capital

Step-by-step explanation:

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Answer 2

That fund is called the working capital. In running a company, there must be some money kept aside to handle petty cash issues generally occuring on a daily basis. This fund allows the organisation to be able to resist certain problems encountered because of lack of sufficient provision against unexpected events that may jeopardise the future of the company.