Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Financial Management

Question:
The working capital requirement of a business is NOT likely to be low when:
Options:
The scale of the business operation is small
When the growth prospects of the business are high
When the raw material is easily available
When the rate of inflation is low
Correct Answer:
When the growth prospects of the business are high
Explanation:
There will be high capital requirement when the growth prospects are high.