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प्रश्न
Distinguish between fixed capital and working capital.
Distinguish between the following.
Fixed capital and working capital
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उत्तर
| Sr. No. | Points | Fixed capital | Working capital |
| 1. | Meaning | Fixed capital refers to any kind of physical capital. i.e., fixed assets. | Working capital refers to current assets minus current liabilities. |
| 2. | Nature | It stays in the business almost permanently. | Working capital is circulating capital. It keeps changing. |
| 3. | Purpose | It is invested in fixed assets such as land, buildings, equipments, etc. | Working capital is invested in short-term assets such as cash, accounts receivable, inventory, etc. |
| 4. | Sources | Fixed capital funding can come from selling shares, debentures, bonds, long-term loans, etc. | Working capital can be funded with short-term loans, deposits, trade credit, etc. |
| 5. | Objectives of investment | Investors invest money in fixed capital, hoping to make a future profit. | Investors invest money in working capital for getting immediate returns. |
| 6. | Risk Involved | Investment in fixed capital implies more risk. | Investment in working capital is less risky. |
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संबंधित प्रश्न
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.
The sum of all ______ is gross working capital.
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 process of converting raw material into finished goods.
State whether the following statement is true or false.
A firm with large scale operations will require more working capital.
Liberal credit policy creates a problem of bad debts.
Complete the sentence.
The process of converting raw material into finished goods is called ______
State any four factors affecting fixed capital requirement.
Discuss the factors determining working capital requirement.
Fixed capital is also referred as circulating capital.
______ capital is used to carry out day-to-day business activities.
Distinguish between Fixed Capital and Working Capital.
Distinguish between Fixed Capital and Working Capital.
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.
Distinguish between the following.
Fixed Capital and Working Capital
Liberal credit policy creates a problem of bad debts.
