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प्रश्न
Explain the following term/concept:
Fixed capital
उत्तर
Fixed capital is capital used to buy fixed assets that are used for a longer period of time in the business. These assets are not meant for resale. In simple words, fixed capital refers to capital invested in acquiring fixed assets. It stays in the business for a long period, almost permanently. Examples of fixed capital are capital used for purchasing land and buildings, furniture, plant and machinery, etc. Such capital is required at the time of the establishment of a new company.
संबंधित प्रश्न
Distinguish between Fixed capital and Working capital.
Match the correct pairs:
| Group 'A' | Group 'B' | ||
| (1) | Working capital | (a) | Redeemed capital |
| (2) | Equity share capital | (b) | Secretary |
| (3) | Share warrant | (c) | Shares do not have distinctive numbers |
| (4) | Recommendation of dividend | (d) | Fixed assets |
| (5) | Fungibility | (e) | The link between SEBI and Depository |
| (f) | Board of Directors | ||
| (g) | Registered document | ||
| (h) | Sum of current assets | ||
| (i) | Bearer document | ||
| (j) | Permanent capital |
Select the correct answer from the options given below and rewrite the statement.
______ refers to any kind of fixed asset.
Write a word or a term or a phrase which can substitute the following statement.
Capital needed to acquire fixed assets which are used for longer period of time.
Write a word or a term or a phrase which can substitute the following statement.
The sum of current assets.
Write a word or a term or a phrase which can substitute the following statement.
The process of converting raw material into finished goods.
State whether the following statement is true or false.
The business dealing in luxurious products will require huge amount of working capital.
Complete the sentence.
The process of converting raw material into finished goods is called ______
State any four factors affecting fixed capital requirement.
Justify the following statement.
There are various factors affecting the requirement of fixed capital.
______ capital is used to carry out day-to-day business activities.
Explain the following term/concept in detail:
Overhead
Distinguish between Fixed Capital and Working Capital.
Distinguish between the following.
Fixed Capital and Working Capital.
Liberal credit policy creates a problem of bad debts.
Distinguish between the following.
Fixed Capital and Working Capital
Liberal credit policy creates a problem of bad debts.
Liberal credit policy creates a problem of bad debts.
Liberal credit policy creates a problem of bad debts.
Distinguish between Fixed Capital and Working Capital.
