Economics · Working Capital Management
In the context of working capital management, how does a high inventory turnover ratio typically impact a company's working capital cycle?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1It increases the need for long-term financing to support daily operations.
- 2It has no impact on the working capital cycle.
- 3It shortens the working capital cycle, reducing the time inventory is tied up in the business.✓
- 4It lengthens the working capital cycle, requiring more funding for inventory.
Correct answer
It shortens the working capital cycle, reducing the time inventory is tied up in the business.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Working Capital Management MCQs →Want more practice questions on Working Capital Management?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Working Capital Management