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प्रश्न
A business firm should have extra funds to meet future emergencies. Identify the type of working capital indicated here.
विकल्प
Special
Seasonal
Initial
Regular
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उत्तर
Special
Explanation:
A firm may need additional working capital to meet future contingencies that may arise in business is called as special working capital. Special working capital is required in the unforeseen. contigencies such as:
- To manage sudden increase of demand in the market;
- Depression leading to piling up of inventory;
- During strikes, lockouts, and national calamities like earthquakes, floods, fire, etc.
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संबंधित प्रश्न
Answer the following question:
The Return on Investment (ROI) of a company ranges between 10 - 12% for the past three years. To finance its future fixed capital needs, it has the following options for borrowing debt:
Option ‘A’: Rate of interest 9%
Option ‘B’: Rate of interest 13%
Which source of debt, ‘Option A’ or ‘Option B’, is better? Give reasons in support of your answer. Also, state the concept being used in taking the decision.
Explain the following as factors affecting the requirements of fixed capital:
Technology upgradation
Explain the following as factors affecting the requirements of working capital:
Seasonal factors
Explain the following as factors affecting the requirements of working capital:
Production cycle
How does working capital affect both the liquidity as well as profitability of a business?
Companies with a higher growth potential are likely to
Higher working capital usually results in :
What are the important determinants of working capital requirement?
Which of the following factors highlight the importance of capital budgeting decisions
Net working capital may be defined as the:
