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प्रश्न
A business firm should have extra funds to meet future emergencies. Identify the type of working capital indicated here.
विकल्प
Special
Seasonal
Initial
Regular
उत्तर
Special
Explanation:
A firm may need additional working capital to meet future contingencies that may arise in business is called as special working capital. Special working capital is required in the unforeseen. contigencies such as:
- To manage sudden increase of demand in the market;
- Depression leading to piling up of inventory;
- During strikes, lockouts, and national calamities like earthquakes, floods, fire, etc.
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संबंधित प्रश्न
Answer the following question:
The Return on Investment (ROI) of a company ranges between 10 - 12% for the past three years. To finance its future fixed capital needs, it has the following options for borrowing debt:
Option ‘A’: Rate of interest 9%
Option ‘B’: Rate of interest 13%
Which source of debt, ‘Option A’ or ‘Option B’, is better? Give reasons in support of your answer. Also, state the concept being used in taking the decision.
Explain the following as factor affecting the requirements of fixed capital:
Scale of operations
Explain the following as factors affecting the requirements of working capital:
Scale of operations
Explain the following as factors affecting the requirements of working capital:
Production cycle
Write a word or a term or a phrase which can substitute the following statement :
The difference between current assets and current liabilities.
What is meant by capital gearing ratio?
Higher dividend per share is associated with
Working capital is calculated as?
______ refers to the decisions regarding where to invest so as to earn the highest possible returns on investment.
Fixed capital is financed through:
