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
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.
Question : During boom conditions more working capital is needed. Which of the following factors affect the working capital requirements in the given statement?
Question : Company following liberal credit policy needs more working capital due to higher amount of debtors. Which of the following factors affect the working capital requirements in the given statement?
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?
Question : The firm which operate at large scale required more working capital. Which factor affecting working capital requirement is highlighted in the statement?
Question : Which of the following is not the factor affecting fixed capital requirements?
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