Which of the following is not a component of the working capital for a chemical process plant ?
Correct answer: D. Storage facilities
- A. Product inventory
- B. In-process inventory
- C. Minimum cash reserve
- D. Storage facilities
Explanation
Working capital includes inventories and cash needed for routine operation, such as product and in-process inventories and a minimum cash reserve. Storage facilities are permanent plant assets and belong to fixed capital, not working capital.
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