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प्रश्न
Liberal credit policy creates a problem of bad debts.
विकल्प
True
False
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उत्तर
This statement is True.
Explanation:
If the firm does not get a credit facility for purchases but adopts a liberal credit policy for its sales, it requires more working capital. On the other hand, if credit terms of purchases are favourable and terms of credit sales are less liberal, then the cash requirement will be less.
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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.
______ refers to any kind of fixed asset.
Select the correct answer from the options given below and rewrite the statement.
The sum of all ______ is gross working capital.
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.
A firm with large scale operations will require more working capital.
Initial planning of capital requirement is made by______.
Answer in one sentence.
What is fixed capital?
Explain the following term/concept.
Fixed capital
State any four factors affecting fixed capital requirement.
Discuss the factors determining working capital requirement.
Justify the following statement.
The nature of business affects the working capital requirement.
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.
Distinguish between the following.
Fixed Capital and Working Capital.
