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Management · Q125

Financial Management

Graduate and Post Graduate · Management · question 125

Q125

Greater the size of a business unit ________ will be the requirements of working capital.

A.
larger
Answer
B.
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.