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Business Studies · 2024 · 4 marks
CBSE 2024 · Region 4 · Set 3 · Q28
Explain the following factors affecting the working capital requirementsof a company :(a)Operating Efficiency(b)Availability of Raw Material
Explain the following factors affecting the working capital requirements
of a company :
(a)
Operating Efficiency
(b)
Availability of Raw Material
Marking-scheme solution
(i)
Operating Efficiency:
Firms manage their operations with varied degrees of efficiency.
Such efficiencies may reduce the level of raw materials, finished
goods and debtors resulting in lower requirement of working
capital.
(ii)
Availability of Raw Material :
If the raw materials and other required materials are available
freely and continuously, lower stock levels may suffice.
Larger the lead time, larger the quantity of material to be stored
and larger shall be the amount of working capital required
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CBSE Class 12 Business Studies past-paper question from the 2024board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.