Q198
Under trading means.
A.
Having low amount of working capital
B.
High turnover of working capital
C.
Sales are less compared to assets employed
D.
Low turnover of working capital
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Under trading means low turnover of working capital. Under-trading is the reverse of over-trading. It means keeping funds idle and not using them properly. This is due to the under employment of assets of the business, leading to the fall of sales and results in financial crises.