Read the following statements:
1. Working capital is the amount of funds necessary to cover the cost of operating the enterprise.
2. Circulating capital means current assets of a company that are changed in the ordinary course of business from one form to another.
A. 1 and 2 both are correct
B. 1 and 2 both are incorrect
C. 1 is correct, but 2 is incorrect
D. 1 is incorrect, but 2 is correct
Answer: Option A
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