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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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