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प्रश्न
What is working capital?
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उत्तर
Working capital is that part of firm’s capital which is required for financing the short term or current asset. The working capital is also known as revolving capital or circulating capital or short term capital.
It is the amount of funds needed to meet the day to day operations of a business; it can be described as the excess of current assets over current liabilities.
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संबंधित प्रश्न
Match the pairs
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Group A |
Group B |
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a. Fixed Capital |
1. Owned Capital |
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b, Overdraft facility |
2. Bearer document |
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c. Share certificate |
3. Investment in fixed assets |
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d. Debentures |
4. Current Account |
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e. Return on shares |
5. Application Money |
|
|
6. Dividend |
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7. Investment in current assets |
|
|
8. Borrowed capital |
|
|
9. Savings Account |
|
|
10. Registered Document |
Explain the following as factors affecting the requirements of fixed capital:
Technology upgradation
Explain the following as factors affecting the requirements of working capital:
Nature of business
Amrit is running a ‘transport service’ and earning good returns by providing this service to industries. Giving reason, state whether the working capital requirement of the firm will be ‘less’ or ‘more’.
Write a word or a term or a phrase which can substitute the following statement :
The difference between current assets and current liabilities.
Fixed Capital Working Capital
What is meant by capital gearing ratio?
Companies with a higher growth potential are likely to
Higher working capital usually results in :
A fixed asset should be financed through
Working capital is calculated as?
______ decision involves the decision regarding the distribution of profit or surplus of the company.
Net working capital may be defined as the:
What is fixed capital?
Through which sources must fixed capital be financed?
Which list contains long-term sources for financing fixed capital?
Which set of activities is covered by expenditure on fixed capital?
Why do the large funds involved in capital budgeting require detailed analysis?
How does fast obsolescence under Technology Upgradation affect fixed capital requirement?
How does the Level of Collaboration affect each firm's fixed asset investment?
