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Working Capital Test
Test your knowledge of working capital management
📝
10 Questions
⏱️
15 minutes
🔢
Intermediate
0
/ 10 answered
⏱️
900
Question 1
What is working capital used for?
A
Long-term investments
B
Daily business operations
C
Buying land
D
Paying dividends
Question 2
Which is permanent working capital?
A
Seasonal stock
B
Year-round operational needs
C
Christmas inventory
D
Holiday sales funds
Question 3
What does just-in-time mean?
A
Always early
B
Producing when needed
C
Late delivery
D
Bulk production
Question 4
What is work-in-progress?
A
Finished products
B
Items being manufactured
C
Raw materials
D
Sold goods
Question 5
What is a debtor?
A
Someone who owes money
B
A creditor
C
A supplier
D
An investor
Question 6
What does lean manufacturing aim to do?
A
Increase waste
B
Eliminate waste
C
Hire more staff
D
Buy more machines
Question 7
What is an overdraft?
A
Extra profit
B
Temporary negative bank balance
C
Loan contract
D
Investment return
Question 8
What causes production disruption?
A
High profits
B
Material delivery delays
C
Good planning
D
Efficient workers
Question 9
What is a contingency reserve for?
A
Expected expenses
B
Unexpected problems
C
Planned investments
D
Regular salaries
Question 10
What happens if working capital rises without production increase?
A
Profits increase
B
Profits decrease
C
No change
D
Sales double
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