Identify which of the following factor does not affect working capital requirement ?
(
This question was previously asked in
Shift 05/06/2023 8:30 AM - 10:30 AM
A
Production Cycle
B
Seasonal Factors
C
Credit Allowed
D
Diversification
Correct Answer
Diversification
Detailed Explanation
Factor affecting the requirements of working capital
- Production cycle: Production cycle is the time span between the receipt of raw material and their conversion into finished good
- seasonal Factors: Most business have some seasonality in their operations. In peak season, because of higher level of activity, larger amount of working capital is required
- credit allowed: Different firms allow different credit terms to their customers. These depend upon the level of competition that a firm faces as well as the credit worthiness of their clientele.
Factor affecting the requirements of fixed capital
- Diversification: A firm may choose to diversify its operations for various reasons, With diversification, fixed capital requirements increase
Get Dubuddy App
Practice on the go with our mobile app
More CUET Questions
1
Which of the following concept arises from delegated
2
Which technique of managerial control determines the level of activity at which the firm can earn its target profits?
(
3
According to EDI, persistence refers to :
(
4
Arrange the following steps of staffing process in correct sequence :
(A) Estimating the Manpower Requirement
(B) Recruitment
(C) Training and Development
(D) Selection
(E) Placement and Orientation
Choose the correct answer from the options given below :
(
Test Series
CUET Subjects
Your CUET Journey Starts with DuBuddy
CUET ki Practice Means DuBuddy Pe Practice