Terms of credit: On the worst case, a company may purchase all types of raw-materials for cash and sell all of its products on credit, the required amount of working capital will be very high. On the best case, the company may have the capability to buy on credit and sell it for cash and it will need less amount of working capital. It is a fact that the companies stand at a situation in between these cases and the length of the period ofcredit has a direct bearing on working capital.The correct answer is C.