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Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?
Assertion (A): In peak season, because of higher level of activity, larger amount of working capital is required.
Reason (R): Most business have some seasonality in their operations.
- a)Both A and R are true and R is the correct explanation of A
- b)Both A and R are true, but R is not the correct explanation of A
- c)A is true, but R is false
- d)A is false, but R is true
Correct answer is option 'A'. Can you explain this answer?
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Direction: In the questions given below are two statements labelled a...
The seasonal enterprises, i.e., the enterprise whose operations pick up seasonally may require more working capital to meet their increased operations during the particular season.
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Direction: In the questions given below are two statements labelled a...
Understanding the Assertion and Reason
In this context, we have two statements: Assertion (A) and Reason (R). Let's break down each statement to understand their validity and relationship.
Assertion (A): Higher Working Capital in Peak Season
- True Statement: During the peak season, businesses experience increased sales and production activities.
- Reason: This heightened activity necessitates a larger amount of working capital to manage the greater volume of inventory, pay suppliers, and handle operational expenses.
Reason (R): Seasonality in Business Operations
- True Statement: Many businesses operate with seasonal variations, meaning they have periods of high demand followed by slower periods.
- Implication: This seasonality directly impacts the need for working capital, as businesses must prepare for peak seasons ahead of time.
Analyzing the Relationship
- Connection Between A and R: The reason provided (R) explains why the assertion (A) is true. Since most businesses experience seasonality, it logically follows that they require more working capital during peak seasons to support the increased activity.
Conclusion
Based on the above analysis, both statements are true, and the reason provided accurately explains the assertion. Therefore, the correct answer is:
a) Both A and R are true and R is the correct explanation of A.
This highlights the interconnectedness of business operations and the financial strategies required to manage them effectively, particularly in seasonal contexts.
In this context, we have two statements: Assertion (A) and Reason (R). Let's break down each statement to understand their validity and relationship.
Assertion (A): Higher Working Capital in Peak Season
- True Statement: During the peak season, businesses experience increased sales and production activities.
- Reason: This heightened activity necessitates a larger amount of working capital to manage the greater volume of inventory, pay suppliers, and handle operational expenses.
Reason (R): Seasonality in Business Operations
- True Statement: Many businesses operate with seasonal variations, meaning they have periods of high demand followed by slower periods.
- Implication: This seasonality directly impacts the need for working capital, as businesses must prepare for peak seasons ahead of time.
Analyzing the Relationship
- Connection Between A and R: The reason provided (R) explains why the assertion (A) is true. Since most businesses experience seasonality, it logically follows that they require more working capital during peak seasons to support the increased activity.
Conclusion
Based on the above analysis, both statements are true, and the reason provided accurately explains the assertion. Therefore, the correct answer is:
a) Both A and R are true and R is the correct explanation of A.
This highlights the interconnectedness of business operations and the financial strategies required to manage them effectively, particularly in seasonal contexts.
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Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): In peak season, because of higher level of activity, larger amount of working capital is required.Reason (R): Most business have some seasonality in their operations.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'A'. Can you explain this answer?
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Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): In peak season, because of higher level of activity, larger amount of working capital is required.Reason (R): Most business have some seasonality in their operations.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): In peak season, because of higher level of activity, larger amount of working capital is required.Reason (R): Most business have some seasonality in their operations.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): In peak season, because of higher level of activity, larger amount of working capital is required.Reason (R): Most business have some seasonality in their operations.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'A'. Can you explain this answer?.
Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): In peak season, because of higher level of activity, larger amount of working capital is required.Reason (R): Most business have some seasonality in their operations.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): In peak season, because of higher level of activity, larger amount of working capital is required.Reason (R): Most business have some seasonality in their operations.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): In peak season, because of higher level of activity, larger amount of working capital is required.Reason (R): Most business have some seasonality in their operations.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'A'. Can you explain this answer?.
Solutions for Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): In peak season, because of higher level of activity, larger amount of working capital is required.Reason (R): Most business have some seasonality in their operations.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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