Business Studies, asked by atidumqwajilr1926, 1 year ago

How does the lenght of operating cycle affect the working capital requirementof a business?

Answers

Answered by Ankitkumar200314
0

The operating cycle is useful for estimating the amount of working capital that a company will need in order to maintain or grow its business. A company with an extremely short operating cycle requires less cash to maintain its operations, and so can still grow while selling at relatively small profit margins.

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