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    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 β‚Ή5 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?Β 
    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).

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