Vidyalelo
Commerce · Q183

Financial Management

Graduate and Post Graduate · Commerce · question 183

Q183

Excess working capital results in ________.

A.
Block of cash
Answer
B.
Loosing interests
C.
Lack of production
D.
Lack of smooth flow of production

Answer: Option A

Solution

Answer: Option A
Solution:
Excess working capital results in Block of cash. Excess working capital overall, though, is bad because it means that the amount of money available within the company is much more than what it needs for its operations.