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Question : During depression less working capital is needed.Which of the following factors affect the working capital requirements in the given statement?

Option 1: Scale of operations

Option 2: Business cycle

Option 3: Credit allowed

Option 4: Credit availed

 


Team Careers360 17th Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: Business cycle


Solution : The requirements of working capital are also determined by different phases of business cycle. During depression or recession less working capital is needed as both sales and production will be low.

Hence, option B is correct.

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