Read the following statements:
1. The rate of return on investment increases with the shortage of working capital.
2. Net working capital is the excess of current assets over current liabilities.
3. Greater the size of the business unit, larger will be the requirement of working capital.
4. Working capital is also known as circulating capital.
Which one of the following consists of the correct statements?
A. 1, 2 and 3
B. 2, 3 and 4
C. 3, 4 and 1
D. 1, 2 and 4
Answer: Option B
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