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प्रश्न
How does 'Inflation' affect the working capital requirements of a company? State.
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उत्तर
During the inflationary situation, there will be a rise in the prices of inputs and wages to labourers. This further leads to an increase in funds to meet the required volume of production and sales. Therefore, the working capital is affected by the inflationary condition.
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Factors Affecting Fixed and Working Capital Requirements
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