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प्रश्न
Explain the following term/concept:
Production Cycle
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उत्तर
The process of converting raw material into finished goods is called the production cycle. If the period of the production cycle is longer, then the firm needs more amount of working capital. If the manufacturing cycle is short, it requires less working capital.
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संबंधित प्रश्न
Distinguish between fixed capital and working capital.
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.
______ refers to any kind of fixed asset.
Select the correct answer from the options given below and rewrite the statement.
______ refers to the excess of current assets over current liabilities.
Write a word or a term or a phrase which can substitute the following statement.
The excess of current assets over current liabilities.
Write a word or a term or a phrase which can substitute the following statement.
The process of converting raw material into finished goods.
Write a word or a term or a phrase which can substitute the following statement.
The boom and recession cycle in the economy
State whether the following statement is true or false.
The business dealing in luxurious products will require huge amount of working capital.
State whether the following statement is true or false.
Financial institutions and banks cater to the working capital requirement of business.
Complete the sentence.
The process of converting raw material into finished goods is called ______
Answer in one sentence.
What is fixed capital?
Justify the following statement.
There are various factors affecting the requirement of fixed capital.
Justify the following statement.
There are various factors affecting the requirement of working capital.
Explain the following term/concept in detail:
Overhead
Distinguish between the following.
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.
