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FM
Question Practice

If inflation increases, how does it typically affect a business's working capital needs?

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 inflation increases, how do...

Single Answer MCQ
Q-00092815

If inflation increases, how does it typically affect a business's working capital needs?

1

Decreases working capital needs

2

Increases working capital needs

3

Has no effect on working capital needs

4

Only affects long-term capital

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