This is the excess capital over the minimum amount of working capital that must be maintained.Select one:a.Permanent Working Capitalb.Net Working Capitalc.Temporary Working Capitald.Gross Working Capital
Question
This is the excess capital over the minimum amount of working capital that must be maintained.Select one:a.Permanent Working Capitalb.Net Working Capitalc.Temporary Working Capitald.Gross Working Capital
Solution
The answer is c. Temporary Working Capital. This type of capital refers to the excess capital over the minimum amount of working capital that must be maintained. It fluctuates with the business cycle and is used to finance short-term needs of the business like paying off
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