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Insufficient working capital results in __________.
- ABlock of cash
- BLoosing interests
- CLack of production
- DLack of smooth flow of production
Correct answer: D
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CCommunity
Lack of smooth flow of production
Insufficient working capital results in Lack of smooth flow of production. Inadequate amount of working capital may create a lot of financial problems in business. Due to shortage of working capital, raw materials can not be purchased on time and payment of labor and other expenses can not be made on time.
Insufficient working capital results in Lack of smooth flow of production. Inadequate amount of working capital may create a lot of financial problems in business. Due to shortage of working capital, raw materials can not be purchased on time and payment of labor and other expenses can not be made on time.