Match the following factors affecting the working capital requirement: | LIST-I (Factors) | | LIST-II (Explanation) | |---|---|---| | A. | Level of Competition | I. A firm allows credit to its customers. It may also get credit from its suppliers. | | B. | Credit Availed | II. A liberal credit policy results in a higher number of debtors, increasing the requirement of working capital. | | C. | Inflation | III. May necessitate larger stocks of finished goods to meet urgent orders from customers | | D. | Credit Allowed | IV. Larger amounts are required even to maintain a constant volume of production and sales. | Choose the correct answer from the options given below:

Question

Option 1: A-I, B-II, C-III, D-IV

Option 2: A-III, B-I, C-IV, D-II

Option 3: A-I, B-III, C-IV, D-II

Option 4: A-III, B-IV, C-I, D-II

AfterBoards · Accepted Answer

The answer is 'A-III, B-I, C-IV, D-II'. View full solution:

CUET Business Studies 2026 11th May Shift 2 PYQs

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