📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    Consider the following statements on Working Capital

    Assessment: 1. The Tandon Committee suggested the "Maximum Permissible Bank Finance" (MPBF) method. 2. Nayak Committee recommendations are used for MSMEs with credit limits up to ₹5 Crore. 3. Operating Cycle method is used to calculate the time taken to convert cash back into cash. Which of the statements above is/are correct? 
    A 1 and 2 only Correct Answer Incorrect Answer
    B 2 and 3 only Correct Answer Incorrect Answer
    C 1 and 3 only Correct Answer Incorrect Answer
    D 1, 2, and 3 Correct Answer Incorrect Answer
    E 3 only Correct Answer Incorrect Answer

    Solution

    All statements are correct. The Nayak Committee's "Turnover Method" is the standard for small-scale units (20% of projected annual turnover).

    Practice Next
    More General Topics in Finance Questions

    Relevant for Exams:

    ask-question