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Model Paper 4 — Business Studies STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceBusiness StudiesModel Paper 41 Mark
MCQ
Which of the following statement is false?
a. Service industries require less working capital.
b. Working capital requirement is higher in firms with shorter processing cycle.
c. A liberal credit policy results in larger working capital requirement.
d. Larger the lead time, larger shall be the amount of working capital required.
  • ✓
    option (b)
  • B
    option (c)
  • C
    option (a)
  • D
    option (d)
✓

Answer

Correct option: A.
option (b)
(a) option (b)
Explanation: Working capital requirement is higher in firms with shorter processing cycle.

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