Insufficient working capital may result into which combination of the following...

Home / Commerce / Business Finance / Question

Examveda

Insufficient working capital may result into which combination of the following?
1. Failures to adapt to changes.
2. Enhancement in credit-worthiness of the firm.
3. Reduced availability of trade and cash discounts.
4. Reduced volume of sales.

A. 1, 2 and 3

B. 1, 3 and 4

C. 1, 2 and 4

D. All of the above

Answer: Option B

This Question Belongs to Commerce >> Business Finance

Related Questions on Business Finance

A. Operating ratio

B. Sales turnover ratio

C. Current ratio

D. Acid test ratio

View Answer

A. Net present value method

B. Internal rate of return method

C. Profitablity index method

D. None of the above

View Answer

List-I	List-II
a. Modigliani Miller approach	1. Commercial papers
b. Net operating income approach	2. Working capital management
c. Short-term money market instrument	3. Capital structure
d. Factoring	4. Arbitrage

A. a-4, b-3, c-1, d-2

B. a-3, b-4, c-1, d-2

C. a-2, b-3, c-1, d-4

D. a-3, b-2, c-4, d-1

View Answer

A. All financing by retained earnings only

B. No change in the key variables such as EPS and DPS

C. The firm has finite life

D. All earnings are either distributed as dividends or invested internally immediately

View Answer