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Examveda

Insufficient working capital results in __________.

A. Block of cash

B. Loosing interests

C. Lack of production

D. Lack of smooth flow of production

Answer: Option D

Solution(By Examveda Team)

Insufficient working capital results in Lack of smooth flow of production. Inadequate amount of working capital may create a lot of financial problems in business. Due to shortage of working capital, raw materials can not be purchased on time and payment of labor and other expenses can not be made on time.

This Question Belongs to Commerce >> Financial Management

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