Advertisements
Advertisements
प्रश्न
Explain the following as factors affecting the requirements of working capital:
Seasonal factors
Advertisements
उत्तर
Working capital refers to current assets which help in day-to-day business operations.
Seasonal factors: A company selling seasonal products will require high working capital to meet higher sale, higher production, higher stock and more debtors. While a company selling goods throughout the season will require constant working capital which is low working capital spread throughout the season.
Peak season ⇒ High working capital
Lean season ⇒ Low working capital
संबंधित प्रश्न
Explain the following as factors affecting the requirements of fixed capital:
Financing alternatives
Varunica Ltd., a reputed truck manufacturing company, needs rupees twenty crores as additional capital to expand its business. Mr. Alind Jindal, the CEO of the company, wants to raise funds through equity. The Finance Manager, Mr. Nikhil Sachdeva, suggests that the existing shareholders be offered the privilege to subscribe to new issue of shares as per the terms and conditions of the company which was agreed by Mr. Alind Jindal.
Name the method through which the company decided to raise additional capital.
Amrit is running a ‘transport service’ and earning good returns by providing this service to industries. Giving reason, state whether the working capital requirement of the firm will be ‘less’ or ‘more’.
How does working capital affect both the liquidity as well as profitability of a business?
What is meant by capital gearing ratio?
Higher dividend per share is associated with
A fixed asset should be financed through
Current assets of a business firm should be financed through
How long do fixed assets last?
Which group consists of fixed assets?
What is fixed capital?
Which list contains long-term sources for financing fixed capital?
Why do capital budgeting decisions matter for long-term growth?
Why do the large funds involved in capital budgeting require detailed analysis?
What is the effect of a larger Scale of Operations on fixed capital?
How does Choice of Technique affect fixed capital requirement?
How does Diversification affect fixed capital?
