Question

If raw materials are easily available and there is a ready supply of raw materials and inputs then firms can manage with less amount of working capital also as they need not maintain any stock of raw materials. State true or false.

Answer 1

True. If raw materials are easily available and there is a ready supply of raw materials and inputs then firms can manage with less amount of working capital also as they need not maintain any stock of raw materials.nIf the supply of raw materials is not smooth then firms need to maintain a large inventory.