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Explain the following term/concept. Working capital - Secretarial Practice

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प्रश्न

Explain the following term/concept.

Working capital

संक्षेप में उत्तर
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उत्तर

Working capital is the capital which is used to carry out the day to day business activities. After estimating fixed capital requirement of the business firm, it is necessary to estimate the amount of capital, that would be needed to ensure smooth functioning of the business firm. A business firm requires funds to store adequate raw materials in stock.

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Capital Requirements
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अध्याय 1: Introduction To Corporate Finance - Exercises [पृष्ठ १३]

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बालभारती Secretarial Practice [English] Standard 12 Maharashtra State Board
अध्याय 1 Introduction To Corporate Finance
Exercises | Q 2. 4. | पृष्ठ १३
एससीईआरटी महाराष्ट्र Secretarial Practice [English] 12 Standard HSC
अध्याय 1 Introduction To Corporate Finance
Explain the following terms / concepts | Q 2

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.

When the population is increasing at high rate, certain manufacturers find this as an opportunity to ______ business.


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 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.


Complete the sentence.

The process of converting raw material into finished goods is called ______


Justify the following statement.

Fixed capital stays in the business almost permanently.


Explain the following term/concept:

Production Cycle


______ capital is used to carry out day-to-day business activities.


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.


Liberal credit policy creats a problem of bad debts.


Liberal credit policy creates a problem of bad debts.


Liberal credit policy creates a problem of bad debts.


Distinguish between the following.

Fixed Capital and Working Capital


Liberal credit policy creates a problem of bad debts.


Liberal credit policy creates a problem of bad debts.


Distinguish between the following.

Fixed Capital and Working Capital.


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