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प्रश्न
When XYZ company acquired a toy manufacturing company, it paid a large amount for the goodwill. Which source of business funds of XYZ company was impacted?
विकल्प
Fixed capital
Special working capital
Circulating capital
Gross working capital
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उत्तर
Fixed capital
Explanation:
Fixed capital refers to the finances required to acquire fixed assets that will be used continuously for business activities.
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संबंधित प्रश्न
Explain the following as factor affecting the requirements of fixed capital:
Scale of operations
State, with reason, whether the following statement is True or False.
Requirement of working capital does not depend upon any factor.
Answer the question.
Briefly explain any four types of working capital required by a business concern.
Explain any four factors that affect the capital structure of a company.
Higher working capital usually results in :
Current assets are those assets which get converted into cash
Which of the following factors highlight the importance of capital budgeting decisions
______ decision involves the decision regarding the distribution of profit or surplus of the company.
Read the following text and answer the following question on the basis of the same:
Mr. A. Bose is running a successful business. Mr. Bose is the owner of R. K. Cement Ltd. Mr. Bose decided to expand his business by acquiring a Steel Factory. This required an investment of Rs. 60 crores. To seek advice in this matter, he called his financial advisor Mr. T. Ghosh who advised him about the judicious mix of equity (40%) and Debt (60%). Employ more of cheaper debt may enhance the EPS. Mr. Ghosh also suggested him to take loan from a financial institution as the cost of raising funds from financial institutions is low. Though this will increase the financial risk but will also raise the return to equity shareholders. He also apprised him that issue of debt will not dilute the control of equity shareholders. At the same time, the interest on loan is a tax-deductible expense for computation of tax liability. After due deliberations with Mr. Ghosh, Mr. Bose decided to raise funds from a financial institution.
"Mr. T. Ghosh who advised him about the judicious mix of equity (40%) and Debt (60%)." The proportion of debt in the overall capital is called ______.
A business firm should have extra funds to meet future emergencies. Identify the type of working capital indicated here.
