Business Studies

Business Finance

Easy

"In peak season because of higher level of activity, larger amount of working capital is required and vice versa". Which factor is being considered here for deciding the working capital requirements?

Business Cycle

Seasonal factors

Operating efficiency

Growth Prospects

✅ Correct Option: 2

Seasonal factors affect working capital: in peak season, higher activity requires larger working capital, while in lean season the requirement falls. The statement describes exactly this. Business cycle refers to boom and depression phases of the economy, which is different. Hence the factor is Seasonal factors.

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In the context of ABC Manufacturing Ltd., the basic requirement of financial planning is to:

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The order of liquidating current assets is:

(A) Prepaid Expenses

(B) Finished goods inventory

(D) Cash at Bank

Choose the correct answer from the options given below:

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The EBT of NextGen Ltd with zero debt situation will be

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Current assets are those assets which get converted into cash within

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The Financing Decision is:

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Identify the pair which does not affect the choice of capital structure :

"In peak season because of higher level of activity, larger amount of working capital is required and vice versa". Which factor is being considered here for deciding the working capital requirements?

Solution

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