Identify the correct decision that is affected by the following factors
-Seasonal factors
-Availability of raw material
-Scale of operations
-Inflation
Choose the correct answer from the options given below:
Identify the correct decision that is affected by the following factors
-Seasonal factors
-Availability of raw material
-Scale of operations
-Inflation
Choose the correct answer from the options given below:
Solution
✅ Correct Option: 3
Seasonal factors, availability of raw material, scale of operations and inflation (price level changes) are all factors affecting the working capital requirements of a business, since they influence the amount tied up in inventory, debtors and day-to-day operations. Hence option 3.
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