Ans. Working capital management refers to the management of a company's current assets and current liabilities. It involves ensuring that the company has sufficient liquidity to meet its short-term obligations while optimizing the utilization of its current assets.The objectives of working capital management are:1. Ensuring Adequate Liquidity: It aims to maintain sufficient cash and liquid assets to meet day-to-day operational expenses and short-term liabilities.2. Efficient Utilization of Current Assets: It involves managing inventory, accounts receivable, and cash in a way that minimizes the investment in working capital while meeting operational requirements.3. Minimizing Financing Costs: Effective working capital management aims to minimize the cost of financing current assets, such as inventory holding costs and accounts receivable financing costs.4. Managing Short-Term Liabilities: It involves negotiating favorable credit terms with suppliers and effectively managing accounts payable to optimize the company's cash position.