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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
Distinguish between Fixed capital and Working capital.
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 process of converting raw material into finished goods.
State whether the following statement is true or false.
The business will require huge funds if assets are acquired on a lease basis.
Complete the sentence.
The process of converting raw material into finished goods is called ______
Explain the following term/concept.
Fixed capital
State any four factors affecting fixed capital requirement.
Justify the following statement.
Fixed capital stays in the business almost permanently.
Justify the following statement.
There are various factors affecting the requirement of working capital.
Explain the following term/concept:
Production Cycle
Explain the following term/concept in detail:
Overhead
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 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.
