Economics · Working Capital Management
Given below are two statements: Statement I: The simple operating cycle analyses both the time dimension of investment and differential magnitudes of investment at different phases of the operating cycle. Statement II: The weighted operating cycle analyses only the time dimension of investment. In light of the above statements, choose the most appropriate answer:
- 1Both Statement I and Statement II are correct.
- 2Both Statement I and Statement II are incorrect.✓
- 3Statement I is correct and Statement II is incorrect.
- 4Statement I is incorrect and Statement II is correct.
Correct answer
Both Statement I and Statement II are incorrect.
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