Justify the following statement. Fixed capital stays in the business almost permanently. - Secretarial Practice

Justify the following statement.

Fixed capital stays in the business almost permanently.

Short Note

Justification:

Fixed capital is the capital which is used to purchase fixed assets of the business.
These fixed assets are used for a longer period of time and are not meant for resale.
In other words, fixed capital refers to the capital invested for acquiring fixed assets.
Examples of fixed capital are capital used for purchasing land and building, furniture, plant and machinery etc. Hence, fixed capital stays in the business almost permanently.

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Capital Requirements

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Chapter 1: Introduction To Corporate Finance - Exercises [Page 13]

Chapter 1 Introduction To Corporate Finance
Exercises | Q 6. 3. | Page 13

Chapter 1 Introduction To Corporate Finance
Justify the following statements | Q 1

Q 6.A | 4 marks

Q 6.C | 4 marks

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.

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.
The excess of current assets over current liabilities.

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.

The nature of business affects the working capital requirement.