Insufficient working capital results in __________.

The correct answer is: D. Lack of smooth flow of production.

Insufficient working capital is a common problem for businesses of all sizes. It can lead to a number of problems, including:

• Lack of smooth flow of production: When a business doesn’t have enough working capital, it can’t pay its suppliers on time. This can lead to disruptions in production, as suppliers may not be willing to continue to provide goods and services without being paid.
• Inability to meet customer demand: If a business doesn’t have enough working capital, it may not be able to meet customer demand. This can lead to lost sales and damage to the business’s reputation.
• Increased costs: When a business doesn’t have enough working capital, it may have to borrow money at high interest rates. This can increase the business’s costs and make it more difficult to make a profit.
• Reduced investment in new products and services: When a business doesn’t have enough working capital, it may not be able to invest in new products and services. This can limit the business’s growth potential.

To avoid the problems associated with insufficient working capital, businesses should carefully manage

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