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A firm selling on credit with a slow turnover needs more:
ABoard members
BWorking capital
CFixed capital
DOffice space
Answer & Solution
Correct answer: B. Working capital
1. Cash is tied up in receivables and stock.
2. Cash sellers recover money faster.
3. So more working capital is needed.
_Source: NCERT Class 11 Business Studies, Chapter 8, Sources of Business Finance._
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