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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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