Q125
Greater the size of a business unit ________ will be the requirements of working capital.
A.
larger
AnswerB.
lower
C.
no change
D.
fixed
Answer: Option A
Solution
Answer: Option A
Solution:
Greater the size of a business unit larger will be the requirements of working capital. Working capital, also known as net working capital (NWC), is the difference between a company's current assets, such as cash, accounts receivable (customers' unpaid bills) and inventories of raw materials and finished goods, and its current liabilities, such as accounts payable.