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
Correct Answer: Growth prospectus
Solution : Growth prospectus is the factor affecting fixed capital requirements. Business cycle level of competition and inflation are the factors affecting working capital requirements.
Hence, option B is correct.
Question : Which of the following is not the factor affecting fixed capital requirements?
Option 1: Growth prospectus
Option 2: Business cycle
Option 3: Choice of technique
Option 4: Scale of operations
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
Question : Which of the following statement is incorrect?
Option 1: Product cost is the factor affecting price determination.
Option 2: Extent of competition in the market is the factor affecting price determination
Option 3: Company characteristics is the factor affecting price determination.
Option 4: None of the above
Question : During boom conditions more working capital is needed. Which of the following factors affect the working capital requirements in the given statement?
Option 1: Scale of operations
Option 3: Credit allowed
Option 4: Credit availed
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?
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