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The factors affecting the Working Capital Requirements are:

A. Credit allowed

B. Financing alternatives

C. Cost of equity

D. Operating efficiency

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 3

Factors affecting working capital requirements include nature of business, scale of operations, credit allowed, credit availed, operating efficiency, availability of raw material, growth prospects, business cycle and inflation. Credit allowed (A) and operating efficiency (D) are among these. Financing alternatives and cost of equity relate to financing decisions and capital structure, not working capital requirements. Hence A and D only.

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