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
Answer (1)
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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