Funds required for purchasing current assets is an example of ........

Business Studies(11th) Sources of Business Finance

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Funds required for purchasing current assets is an example of

Fixed capital requirement

Ploughing back of profits

Working capital requirement

Lease financing

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Explanation:

Current assets are generally used for the day-to-day operations of a business. The funds that a company requires for undertaking day-to-day operations, such as purchase of raw materials and payment of wages and salaries, are part of its working capital requirements. Thus, the funds that a firm requires for purchasing current assets are part of its working capital requirements.