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      Question

      Which type of working capital is required to carry out

      day-to-day operations?
      A Permanent Working Capital Correct Answer Incorrect Answer
      B Temporary Working Capital Correct Answer Incorrect Answer
      C Gross Working Capital Correct Answer Incorrect Answer
      D Net Working Capital Correct Answer Incorrect Answer
      E Regular Working Capital Correct Answer Incorrect Answer

      Solution

      Regular Working Capital refers to the minimum amount of working capital that a business must always maintain to ensure smooth day-to-day operations, such as: Purchasing raw materials, Paying wages and salaries, Covering utility bills, Maintaining inventory. This is a subset of permanent working capital, which remains invested in the business regardless of seasonal or cyclical changes.

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