Question

The working capital requirement of a business is not likely to be low when

(a) The scale of the business operation is small
(b) When the growth prospects of the business are high

(c) When the raw material is easily available
(d) When the rate of inflation is low​

Answer 1

Answer:

The working capital requirement will not be high when the procurement of raw material is difficult or not readily available. When the rate of inflation is low, the working capital requirement will likely not be high.