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प्रश्न
Liberal credit policy creates a problem of bad debts.
विकल्प
True
False
उत्तर
This statement is True.
Explanation:
If the firm does not get a credit facility for purchases but adopts a liberal credit policy for its sales, it requires more working capital. On the other hand, if credit terms of purchases are favourable and terms of credit sales are less liberal, then the cash requirement will be less.
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संबंधित प्रश्न
Select the correct answer from the options given below and rewrite the statement.
When the population is increasing at high rate, certain manufacturers find this as an opportunity to ______ business.
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 excess of current assets over current liabilities.
Initial planning of capital requirement is made by______.
Answer in one sentence.
What is fixed capital?
Justify the following statement.
There are various factors affecting the requirement of working capital.
______ capital is used to carry out day-to-day business activities.
Distinguish between the following.
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.
Explain the following term/concept:
Fixed 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
Distinguish between the following.
Fixed Capital and Working Capital.
Distinguish between the following.
Fixed Capital and Working Capital.
