The management of working capital is no less important than the management of long-term financial investment. The uses of funds of a concern can be divided into two parts namely long-term funds and short-term funds. The long – term investment may be termed as ‘fixed investment.’ A major part of the long-term funds is invested in the fixed assets. These fixed assets are retained in the business to earn profits during the life of the fixed assets. To run the business operations short–term assets are also required. In this paper, Management of Working Capital is discussed critically.

KEYWORDS: Working Capital, Long-Term Financial Investment, Short-Term Funds, Fixed Investment.