Question

A typical farmers capital includes tractor, turbines, plough, seeds, fertilisers, pesticides and cash in hand. Which of these combinations can be classified as working capital?

• A. Tractor, Turbines and Plough
• B. Seeds, Fertilisers, Pesticides and Cash in hand
• C. Plough, Seeds, Fertilisers and Pesticides
• D. Plough, Seeds, Fertilisers, Pesticides and Cash in hand

Answer 1

The correct option is B Seeds, Fertilisers, Pesticides and Cash in hand

• The working capital is defined as the materials which are used by the farmers to increase the yield called as the raw materials.
• This working capital includes seeds, fertilizers, manure, pesticides, growth regulators, etc.
• These are the materials that are used by the farmers in the agricultural field to fetch the crops with a higher yield.
• The money or cash is important in order to fulfill the requirements of the raw materials.
• Thus, the correct answer is option B.