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प्रश्न
Justify the following statement.
Fixed capital stays in the business almost permanently.
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उत्तर
Justification:
- Fixed capital is the capital which is used to purchase fixed assets of the business.
- These fixed assets are used for a longer period of time and are not meant for resale.
- In other words, fixed capital refers to the capital invested for acquiring fixed assets.
- Examples of fixed capital are capital used for purchasing land and building, furniture, plant and machinery etc. Hence, fixed capital stays in the business almost permanently.
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संबंधित प्रश्न
Select the correct answer from the options given below and rewrite the statement.
______ refers to any kind of fixed asset.
Write a word or a term or a phrase which can substitute the following statement.
The excess of current assets over current liabilities.
State whether the following statement is true or false.
The business will require huge funds if assets are acquired on a lease basis.
State whether the following statement is true or false.
A firm with large scale operations will require more working capital.
State whether the following statement is true or false.
Financial institutions and banks cater to the working capital requirement of business.
Initial planning of capital requirement is made by______.
Complete the sentence.
The process of converting raw material into finished goods is called ______
State any four factors affecting fixed capital requirement.
Justify the following statement.
There are various factors affecting the requirement of working capital.
Fixed capital is also referred as circulating capital.
Liberal credit policy creates a problem of bad debts.
Liberal credit policy creates a problem of bad debts.
Explain the following term/concept:
Fixed 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.
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.
Distinguish between the following.
Fixed Capital and Working Capital.
