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Explain the Following as Factor Affecting the Requirements of Fixed Capital: Scale of Operations

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प्रश्न

Explain the following as factor affecting the requirements of fixed capital:

Scale of operations

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उत्तर

The scale of operations: A company with large-scale operations will require larger fixed assets in the form of plants, land and building.

Larger organisation ⇒ Higher investment in fixed assets

Small organisation ⇒ Lower investment in fixed assets

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2013-2014 (March) Delhi Set 1

वीडियो ट्यूटोरियलVIEW ALL [2]

संबंधित प्रश्न

Match the pairs 

Group A

Group B

a. Fixed Capital

1. Owned Capital

b, Overdraft facility

2. Bearer document

c. Share certificate

3. Investment in fixed assets

d. Debentures

4. Current Account

e. Return on shares

5. Application Money

 

 

 

 

 

6. Dividend

7. Investment in current assets

8. Borrowed capital

9. Savings Account

10. Registered Document


Explain briefly any four factors that affect the working capital requirement of a company.


Explain the following as factors affecting the requirements of fixed capital:

Financing alternatives


Explain the following as factors affecting the requirements of working capital:

Nature of business


Explain the following as factors affecting the requirements of working capital:

Scale of operations


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


Ramnath is into the business of assembling and selling of televisions. Recently he has adopted a new policy of purchasing the components on three months credit and selling the complete product in cash. Will it affect the requirement of working capital? Give reason in support of your answer.


What is working capital? Discuss five important determinants of working capital requirement?


Fixed Capital Working Capital 


What is meant by capital gearing ratio?


Why is working capital also known as circulating capital? 


Current assets are those assets which get converted into cash


Higher dividend per share is associated with


A fixed asset should be financed through


______ decision involves the decision regarding the distribution of profit or surplus of the company.


When XYZ company acquired a toy manufacturing company, it paid a large amount for the goodwill. Which source of business funds of XYZ company was impacted?


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