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प्रश्न
Fixed capital is also referred as circulating capital.
विकल्प
True
False
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उत्तर
The statement is False.
Explanation:
Long-term investments in land, buildings, machinery, and equipment with no immediate cash flow are called fixed capital. These support business processes. However, circulating capital includes short-term assets like inventories, raw materials, and cash that are consumed and renewed during the economic cycle.
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संबंधित प्रश्न
Distinguish between Fixed capital and Working capital.
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 process of converting raw material into finished goods.
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The business will require huge funds if assets are acquired on a lease basis.
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The business dealing in luxurious products will require huge amount of working capital.
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A firm with large scale operations will require more working capital.
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Financial institutions and banks cater to the working capital requirement of business.
Initial planning of capital requirement is made by______.
Explain the following term/concept.
Fixed capital
Explain the following term/concept.
Working capital
State any four factors affecting fixed capital requirement.
Justify the following statement.
Fixed capital stays in the business almost permanently.
Discuss the factors determining working capital requirement.
Explain the following term/concept:
Production Cycle
Distinguish between Fixed Capital and Working Capital.
Liberal credit policy creates a problem of bad debts.
Liberal credit policy creates 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.
