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• An excessive investment in working capital, which reduces the return on
capital employed.
• Excessive stock levels which could lead to high costs of storage, and losses
due to deterioration of stock or obsolescence.
• Excessive levels of debtors, which could lead to high levels of bad debts if
late payers are not chased for the debts they owe.
NatalieR answered the question on June 17, 2022 at 07:08
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