Why is working capital needed?
Answer and explanation
Correct answer: दैनिक खर्च और छोटे भुगतान चलाने के लिए
Working capital supports the day-to-day operating cycle of a business. It can finance inventory, wages, utilities, transport, routine purchases and other short-term payments until sales cash is received. Buying a building is normally a long-term investment, while registration is a specific administrative cost; neither represents the main purpose of working capital.
Frequently asked questions
What is the correct answer to this question?
दैनिक खर्च और छोटे भुगतान चलाने के लिए
Why is this the correct answer?
Working capital supports the day-to-day operating cycle of a business. It can finance inventory, wages, utilities, transport, routine purchases and other short-term payments until sales cash is received. Buying a building is normally a long-term investment, while registration is a specific administrative cost; neither represents the main purpose of working capital.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Sources of Business Finance. Topic: Concept, nature and importance of business finance.
