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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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