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प्रश्न
Fixed capital is also referred as circulating capital.
विकल्प
True
False
उत्तर
The statement is False.
Explanation:
Long-term investments in land, buildings, machinery, and equipment with no immediate cash flow are called fixed capital. These support business processes. However, circulating capital includes short-term assets like inventories, raw materials, and cash that are consumed and renewed during the economic cycle.
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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.
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.
Write a word or a term or a phrase which can substitute the following statement.
The boom and recession cycle in the economy
Answer in one sentence.
What is fixed capital?
Explain the following term/concept.
Fixed capital
Justify the following statement.
Fixed capital stays in the business almost permanently.
Fixed capital is also referred as circulating capital.
______ capital is used to carry out day-to-day business activities.
Distinguish between Fixed Capital and Working Capital.
Distinguish between the following.
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.
Distinguish between Fixed Capital and Working Capital.
