ABSTRACT

The primary objective of this project is to know if financial and management of working capital contributes positively to the growth of an organisation.

And also if there is a relationship between over and under investment in working capital and corporate survival.

TABLE OF CONTENTS

Declaration.. iii

Certification.. iv

Dedication.. v

Acknowledgement vi

Abstract vii

Table of Contents. viii

CHAPTER ONE.. 1

1.0 Introduction.. 1

1.1 Background of the Study. 1

1.2 Statement of the Problem.. 4

1.3 Objectives of the Study. 4

1.4 Significance of the Study. 5

1.5 Scope of the Study. 5

1.6 Limitation of the Study. 6

1.7 Research Hypothesis. 7

CHAPTER TWO.. 8

2.0 Literature Review.. 8

2.1 Definition and Concept of Working Capital8

2.2 Financing Working Capital10

2.2.1 Approaches in Financing Working Capital12

2.2.2 Cost of Financing Working Capital13

2.2.3 Risk of Financing. 14

2.3 Sources of Finance. 15

2.4 The Management of Working Capital Components. 20

2.4.1 Management of Cash.. 20

2.4.2 Management of Account Receivables. 23

2.5.3 Management of Inventory. 25

CHAPTER THREE.. 28

3.0 Research Methodology. 28

3.1 Introduction.. 28

3.2 Sampling Procedure. 28

3.2.1 Sampling Technique. 29

3.2.2 Population.. 30

3.3 Research Instrument30

3.3.1 Questionnaire. 30

3.4 Data Analysis Techniques. 32

3.4.1 Condition for Accepting and Rejecting. 33

CHAPTER FOUR.. 34

4.0 Data Analysis. 34

4.1 Introduction.. 34

4.2 Distribution and Return of Questionnaire. 34

4.2.1 Data Presentation and Analysis. 34

4.3 Tests of Hypothesis ChiSquare Test42

CHAPTER FIVE.. 47

5.0 Summary, Conclusion and Recommendations. 47

5.1 Summary. 47

5.2 Conclusion.. 48

5.3 Recommendation.. 49

5.4 Suggestion for further studies. 50

Bibliography. 52

Appendix. 53