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      Question

      The Working Capital Gap (WCG) is calculated

      as:
      A Total Current Assets – Total Current Liabilities Correct Answer Incorrect Answer
      B Total Liabilities – Current Assets Correct Answer Incorrect Answer
      C Current Assets – Current Liabilities (excluding bank borrowing) Correct Answer Incorrect Answer
      D Total Assets – Total Liabilities Correct Answer Incorrect Answer
      E Net Worth – Fixed Assets Correct Answer Incorrect Answer

      Solution

      WCG represents the gap to be financed by the bank = CA – CL (excluding bank borrowings).

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