Business Studies · Working Capital Management
How does the working capital cycle affect the turnover of a business?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The longer the working capital cycle, the higher the turnover
- 2The shorter the working capital cycle, the higher the turnover✓
- 3The turnover is independent of the working capital cycle
- 4The working capital cycle plus the turnover is constant
Correct answer
The shorter the working capital cycle, the higher the turnover
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