Question

Determinant of working capital is

• A. Size of enterprise
• B. Period of manufacturing process
• C. Availability of raw material
• D. All of these

Hint:

Working capital management ensures that the company can fund its day-to-day operations effectively by considering factors like enterprise size, production cycle, and raw material availability.

Answer 1

The Correct Option is D

Step 1: Understand working capital.
Working capital is the capital required for day-to-day operations. It is influenced by various factors that affect the liquidity and operational efficiency of the business.
Step 2: Evaluate the options.
- The size of the enterprise impacts the working capital requirement as larger businesses generally need more working capital. - The period of the manufacturing process determines how quickly inventory is converted into cash, affecting the working capital needed. - Availability of raw materials also affects how much working capital is needed to ensure smooth production without delays.
Step 3: Conclude.
All these factors influence the level of working capital required by an organization.
Final Answer: \[ \boxed{\text{All of these}} \]