Question

Funds required for purchasing current assets is an example of
(a) Fixed capital requirement (b) Ploughing back of profits (c) Working capital requirement (d) Lease financing

Answer 1

Answer:

Funds required for purchasing current assets is an example of Working capital requirement

Among the given options option (c) Working capital requirement is a correct answer.

Explanation:

Every business concern need funds for its day to day operations and routine activities. Requirements of funds for routine activities is known as working capital requirements. Working capital is also known as circulating capital or short term capital.  

Working capital = current assets - current liabilities

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Answer 2

Answer:

C

Explanation:

Working capital requirement