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Question Practice

If a company allows liberal credit terms to its customers, how does it affect working capital?

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA
CBSE
Class 12
Business Studies
Business Studies - II
Financial Management
Question Bank

If a company allows liberal cr...

Single Answer MCQ
Q-00092857

If a company allows liberal credit terms to its customers, how does it affect working capital?

1

It increases working capital needs

2

It reduces working capital needs

3

It has no effect on working capital

4

It only impacts long-term financing

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