in simple terms because I don't understand
Say you are selling shoes. In order to sell in your shop (retail) you have to buy from wholesaler. You need to buy all styles and sizes. This is called stock. You need to pay for stock (although a large retailer may get credit). Basically you will need to spend money before you get it back and this cash is called operating capital/funds.
Explain why firms need operating funds.
in simple terms because I don't understand
