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Question

Which of the following factors affect requirement of working capital?

A
Scale of Operations
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B
Credit Allowed
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C
Production Cycle
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D
All of the above
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Solution

The correct option is D All of the above
Main factors affecting the working capital are as follows:
  • (1) Nature of Business:
  • (2) Scale of Operations:
  • (3) Business Cycle:
  • (4) Seasonal Factors:
  • (5) Production Cycle:
  • (6) Credit Allowed:
  • (7) Credit Availed:
  • (8) Operating Efficiency

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