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During a boom, working capital requirement is typically what?
ALower
BUnchanged
CLarger
DNil
Answer & Solution
Correct answer: C. Larger
Higher sales and production in a boom call for more inventory and debtors.
Related questions
Higher inflation affects working capital requirement how?A larger lead time for raw materials means what for working capital?Credit availed from suppliers affects working capital requirement how?A liberal credit policy towards customers raises which requirement?A longer production cycle leads to what working capital need?Current liabilities are payment obligations due within what period?Which current asset is the most liquid?How is net working capital calculated?