The need for current funds increases when there is an upswing in the business cycle or the sales cycle of an industry.

Question

Quizplus · Accepted Answer

During periods of growth in the business cycle or industry sales cycle, companies often need to invest in additional resources such as inventory, equipment, and advertising in order to take advantage of the growing demand. This requires more current funds to be available for these investments.

The Need for Current Funds Increases When There Is an Upswing