Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Financial Management

Question:

Match List-I with List-II.

List-I List-II
(A) Inflation (I) Higher scale requires large amounts of working capital
(B) Nature of Business (II) Depression leads to lower working capitals requirements
(C) Business Cycle (III) Rising prices lead to higher working capital requirements
(D) Scale of Operations (IV) Trading business requires working capital

Choose the correct answer from the options given below :

Options:

(A)-(III), (B)-(IV), (C)-(II), (D)-(I)

(A)-(IV), (B)-(II), (C)-(I), (D)-(III)

(A)-(III), (B)-(II), (C)-(I), (D)-(IV)

(A)-(III), (B)-(II), (C)-(IV), (D)-(I)

Correct Answer:

(A)-(III), (B)-(IV), (C)-(II), (D)-(I)

Explanation:

The correct answer is option (1) : (A)-(III), (B)-(IV), (C)-(II), (D)-(I)

Explanation :

Higher scale requires large amounts of working capital: This is related to the scale of operations of a business, which is listed under option (D).

- Inflation: This is related to the rising prices, which is listed under option (B).

- Depression leads to lower working capitals requirements: This is related to the business cycle, which is listed under option (C).

- Trading business requires less working capital: This is related to the nature of business, which is listed under option (A).