Practice Working Capital - 5.2 | Chapter 3: Business Size and Finance | ICSE Class 12 Business Studies
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Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

Define working capital.

πŸ’‘ Hint: Think about what kind of expenses a business has.

Question 2

Easy

What is the formula for calculating working capital?

πŸ’‘ Hint: Remember how assets and liabilities are defined.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What does working capital refer to?

  • Funds for day-to-day operations
  • Long-term investment
  • Total assets

πŸ’‘ Hint: Think about the expenses that occur each day.

Question 2

True or False? Low working capital can indicate a potential liquidity issue.

  • True
  • False

πŸ’‘ Hint: Consider what happens when you don't have enough cash.

Solve and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A company has current assets of $100,000 and current liabilities of $80,000. Calculate its working capital. How might this amount affect the company's operations?

πŸ’‘ Hint: Use the formula we discussed!

Question 2

Consider a retail business that has declining sales during the winter season but high inventory costs. What strategies should it deploy to maintain strong working capital?

πŸ’‘ Hint: Think about balancing expenses and income in varying market conditions.

Challenge and get performance evaluation