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Question

Funds required for purchasing current assets is an example of _________.

A
Fixed Capital Requirement
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B
Ploughing Back of Profits
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C
Working Capital Requirement
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D
Lease Financing
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Solution

The correct option is B Working Capital Requirement
Working capital of an enterprise or a company are the funds which are used for holding current assets such as bills receivables, stock of materials and for meeting current expenses like taxes, wages, salaries and rent.

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