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Explain the following term/concept: Production Cycle - Secretarial Practice

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Question

Explain the following term/concept:

Production Cycle

Short Note

Solution

The process of converting raw material into finished goods is called the production cycle. If the period of the production cycle is longer, then the firm needs more amount of working capital. If the manufacturing cycle is short, it requires less working capital.

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Capital Requirements
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2021-2022 (March) Set 1

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 the excess of current assets over current liabilities.


Select the correct answer from the options given below and rewrite the statement.

The sum of all ______ is gross working capital.


Write a word or a term or a phrase which can substitute the following statement.
The process of converting raw material into finished goods.


Explain the following term/concept.

Fixed capital


State any four factors affecting fixed capital requirement.


Answer the following question.

Discuss the factors determining working capital requirement.


______ capital is used to carry out day-to-day business activities.


Explain the following term/concept in detail:

Overhead


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 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 the following.

Fixed Capital and Working Capital.


Liberal credit policy creates a problem of bad debts.


Distinguish between Fixed Capital and Working Capital.


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