Net Working Capital can be said to be financed by: a Cash Credit b. Over Draft c.Equity Capital only d.Term Loan only e.Long term - sources of capital

E Long term source of capital

A. Cash credit

Net working capital is that portion of long-term sources that forms margin for working capital.

a

managing  net working capital is related to short  term financing . so it can be arranged through

over draft, and  term loan. but in this paticular situation, the option is b. 

because option c means only  one source term(short term) loan is available for net working capital managment , which is wrong.

D. Term Loan Only

OPtion  A : Cash Credit

Answer is A- Cash Credit

Answer: B