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प्रश्न
Working capital stays in the business almost permanently.
विकल्प
True
False
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उत्तर
This statement is False.
Explanation:
Working capital is used for day-to-day operations and changes frequently as current assets and liabilities fluctuate. It does not remain permanently in the business like fixed capital.
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संबंधित प्रश्न
Select the correct answer from the options given below and rewrite the statement.
Manufacturing industries have to invest ______ amount of funds to acquire fixed assets.
Write a word or a term or a phrase which can substitute the following statement.
The ratio of different sources of funds in the total capital.
Write a word or a term or a phrase which can substitute the following statement.
The internal source of financing.
Answer in one sentence.
Define working capital.
Answer in one sentence.
Define capital structure.
Justify the following statement.
Capital structure is composed of owned funds and borrowed funds.
______ is not a component of capital structure.
Which items are included in owners' funds?
Which items are included in borrowed funds?
How is the proportion of debt in total capital expressed?
What is the formula for Return on Investment (RoI)?
Why is debt cheaper than equity?
Which payments associated with debt are compulsory?
Why is equity riskless for the business?
What is financial risk?
What is financial leverage?
What happens to the cost of funds as financial leverage increases?
How does Company X Ltd.'s RoI compare with its Cost of Debt?
What happens to Company X Ltd.'s EPS as debt increases?
What is the RoI of Company Y Ltd.?
How does Company Y Ltd.'s RoI compare with its Cost of Debt?
What happens to Company Y Ltd.'s EPS as debt increases?
Which relationship produces Unfavourable Financial Leverage and a decrease in EPS as debt increases?
