Advertisements
Advertisements
Question
Explain the following term/concept.
Fixed capital
Solution
- Fixed capital refers to capital invested in fixed assets. Fixed Capital is invested in long-term assets such as land, building, equipment, etc.
- Investor invests money in fixed capital to make a future profit. Fixed capital is usually required at the time of the establishment of the company.
APPEARS IN
RELATED QUESTIONS
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 boom and recession cycle in the economy
State whether the following statement is true or false.
The business will require huge funds if assets are acquired on a lease basis.
Liberal credit policy creates a problem of bad debts.
State whether the following statement is true or false.
Financial institutions and banks cater to the working capital requirement of business.
Complete the sentence.
The process of converting raw material into finished goods is called ______
Explain the following term/concept.
Working capital
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.
Justify the following statement.
There are various factors affecting the requirement of working capital.
Explain the following term/concept in detail:
Overhead
Liberal credit policy creats a problem of bad debts.
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
Liberal credit policy creates a problem of bad debts.
