of this acti vity on society. Apart from this concrete impact, small busi ness also has an abstract impact on American society. The very presence of the small business sector supports the dreams of individuals that they can, someday, be independent of large organizations. While the likelihood that such an eventuality will ever come to pass for most Americans is quite low, the continued presence of the dream the mere possibility is important psychologically.
The proposed research study will emphasize the conduct of small business operations within the United Arab Emirates. 3Most of the information which is both related to small business operations, and is widely available, however, pertains to small business operations within the mre highly developed market economies. Thus, the research to be performed for the proposed study will be methodologically limited by the necessity to translate data from developed economies into relevant relation ships for the United Arab Emirates.
Literature is reviewed in this section in relation to working capital management and liquidity. In the final report on the proposed research study, additional topics from the literature will also be reviewed.
Although working capital, by definition, is a short term measurement, the amount of working capital available to a firm is largely financed from long term sources equity invest ments, retained earnings, or long term liabilities (Hausman, & Sanchez Bell, 1975). Working capital requirements which cannot be financed from long term sources are generated through short term financing (Brealey, & Myers, 1988).
The amount of working capital required tends to vary according to the type of industry and the commercial charac teristics of the industry. Thus, a manufacturer of commercial jet airframes, such as the Boeing Company, must be able to support a very long work in progress time up to twenty four
months for some models, in comparison to...