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The third law of thermodynamics states:
Short Term Financing
Borrowing funds for a period typically less than one year, often used to cover gaps in cash flow or finance immediate expenses.
Temporary Working Capital
Additional working capital required to support the fluctuating operational needs of a business beyond its permanent working capital.
Working Capital Financing Policies
Strategies that manage the short-term assets and liabilities to ensure a company has adequate funds to meet its operational needs.
Permanent Working Capital
The minimum amount of investment in current assets that a company needs to sustain its business operations.
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