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Question : A company join liberal credit facilities from its suppliers will need less working capital. Which factor affect the working capital requirement in the given statement?
 

Option 1: Scale of operations

Option 2: Business cycle

Option 3: Credit allowed

Option 4: Credit availed

 


Team Careers360 18th Jan, 2024
Answer (1)
Team Careers360 20th Jan, 2024

Correct Answer: Credit availed

 


Solution : The requirements of working capital depend on credit facilities enjoyed by the company. A company enjoying liberal credit facilities from its suppliers will need less working capital.

Hence, option D is correct.

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