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    Question

    Which of the following is the primary method used by

    banks to assess the working capital requirement of a borrower?
    A Turnover Method Correct Answer Incorrect Answer
    B Cash Budget Method Correct Answer Incorrect Answer
    C Tandon Committee Method Correct Answer Incorrect Answer
    D Fund Flow Method Correct Answer Incorrect Answer
    E Financial Ratio Method Correct Answer Incorrect Answer

    Solution

    The Simplified Turnover Method is widely used by banks to assess the working capital requirements of business enterprises. It is based on the annual turnover of the business and determines the financing requirement based on a percentage of this turnover

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