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प्रश्न
Explain the following term/concept.
Working capital
उत्तर
Working capital is the capital which is used to carry out the day to day business activities. After estimating fixed capital requirement of the business firm, it is necessary to estimate the amount of capital, that would be needed to ensure smooth functioning of the business firm. A business firm requires funds to store adequate raw materials in stock.
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संबंधित प्रश्न
Distinguish between Fixed capital and Working capital.
Write a word or a term or a phrase which can substitute the following statement.
The excess of current assets over current liabilities.
Write a word or a term or a phrase which can substitute the following statement.
The process of converting raw material into finished goods.
Fixed capital is also referred as circulating capital.
State whether the following statement is true or false.
The business dealing in luxurious products will require huge amount of working capital.
State whether the following statement is true or false.
A firm with large scale operations will require more working capital.
State whether the following statement is true or false.
Financial institutions and banks cater to the working capital requirement of business.
Justify the following statement.
There are various factors affecting the requirement of working capital.
Explain the following term/concept:
Production Cycle
______ capital is used to carry out day-to-day business activities.
Justify the following statement.
The nature of business affects the working capital requirement.
Distinguish between Fixed Capital and Working Capital.
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.
Distinguish between the following.
Fixed Capital and Working Capital.
Distinguish between the following.
Fixed Capital and Working Capital.
