Page 2 - Home Assignment 6
P. 2
(a) To buy land
(b) To buy building
(c) To make payment for routine expenses.
(d) To buy machine.
Q.5. What is the meaning of the management of working capital?
(a) To maintain the continuity of sufficient amount of working capital.
(b) Take cash available in large amount.
(c) To keep the working capital at the minimum level.
(d) To keep the working capital at the maximum level.
1 mark questions
Q.1 what do you mean by working capital management?
Q.2 Give any two examples of working capital.
Q.3 How can you calculate net working capital?
Q.4 How the inflation affects the working capital?
3-4 mark question
Q.1 Explain the following factors which affects the working capital management?
a. Nature of Business
b. Scale of Operations
c. Business Cycle
Q.2 briefly explains how the Operating Efficiency and Availability of Raw Material
are important factors that one should consider while managing the working
capital requirement.
