QUESTION SET
Question Set Assignment
Jessica Evans
School of Nursing, Liberty University
NURS 523: Financial and Resource Management for Nurse Leaders
Dr. Turner
October 3, 2021
1
QUESTION SET
Question Set Assignment
1. Define working capital and working capital management. Provide examples and
discussion with integration of scholarly resources.
Working capital is the organization’s current assets and current liabilities (Jones et
al., 2019). Working capital is essential to the financial stability of an organization.
Working capital management can be defined as the management of the organization’s
current assets and current liabilities (Jones et al., 2019). Working capital management is
essential for financial stability of an organization. Working capital measures how well an
organization is functioning and operating during a short amount of time (Hawley, 2021).
An example of working capital management includes managing inventory, such as
clinical supplies, and managing accounts receivables and payables. Working capital
management involves the purchase of inventory, such as supplies to provide patient care.
The patients are treated using those supplies and charged for those supplies used as well
as the time dedicated by the healthcare staff. The patient is then billed for the supplies
and services. When the organization receives the payment from the patient or other payer
source, then the management cycle repeats itself. Working capital management ensures
there is sufficient funds to run the organization and afford the necessary resources to care
for patients. Any unnecessary, incoming funds can be invested by the organization for
