Question : The firm which operate at large scale required more working capital. Which factor affecting working capital requirement is highlighted in the statement?
Option 1: Nature of business
Option 2: Scale of operation
Option 3: Business cycle
Option 4: Production cycle
Correct Answer: Scale of operation
Solution : The firm which operates at large scale required more working capital as their inventory leve, debtors,etc are generally high.
Hence, option B is correct.
Question : Which of the following statement is incorrect for factors affecting requirement of fixed capital?
Option 1: The natural business determines the amount of fixed capital to a large extent.
Option 2: Firms which operate at small scale required large amount of fixed capital.
Option 3: Production techniques adopted by Business influence the requirement of fixed capital.
Option 4: None of the above
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
Question : During boom conditions more working capital is needed. Which of the following factors affect the working capital requirements in the given statement?
Question : Which of the following is not the factor affecting fixed capital requirements?
Option 1: Growth prospectus
Option 3: Choice of technique
Option 4: Scale of operations
Question : Which of the following is not the factor affecting working capital requirements?
Option 1: Business cycle
Option 2: Growth prospectus
Option 3: Level of competition
Option 4: Inflation
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