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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.
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 |
State whether the following statement is true or false.
The business will require huge funds if assets are acquired on a lease basis.
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.
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.
Justify the following statement.
Fixed capital stays in the business almost permanently.
Fixed capital is also referred as circulating capital.
Explain the following term/concept:
Production Cycle
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
