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प्रश्न
Why is working capital also known as circulating capital?
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उत्तर
Working capital is the portion of capital invested in the short-term assets of a business. It consists of cash receipts from sales which are used to cover the cost of current operations. It is also known as circulating capital as it keeps circulating or revolving in business. It is invested, recovered and reinvested repeatedly during the business cycle.
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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 |
|
b, Overdraft facility |
2. Bearer document |
|
c. Share certificate |
3. Investment in fixed assets |
|
d. Debentures |
4. Current Account |
|
e. Return on shares |
5. Application Money |
|
|
6. Dividend |
|
7. Investment in current assets |
|
|
8. Borrowed capital |
|
|
9. Savings Account |
|
|
10. Registered Document |
______ refers to the decisions regarding where to invest so as to earn the highest possible returns on investment.
Assertion (A): A commercial bill is a bill of exchange used to finance the working capital requirements of business firms.
Reason (R): Commercial bill is a short-term, negotiable, self-liquidating instrument which is used to finance the credit sales of firms.
A business firm should have extra funds to meet future emergencies. Identify the type of working capital indicated here.
How long do fixed assets last?
What are decisions about investment in long-term assets called?
Which set of activities is covered by expenditure on fixed capital?
What is the effect of higher expected growth on fixed capital?
How does the Level of Collaboration affect each firm's fixed asset investment?
