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प्रश्न
A business firm should have extra funds to meet future emergencies. Identify the type of working capital indicated here.
पर्याय
Special
Seasonal
Initial
Regular
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उत्तर
Special
Explanation:
A firm may need additional working capital to meet future contingencies that may arise in business is called as special working capital. Special working capital is required in the unforeseen. contigencies such as:
- To manage sudden increase of demand in the market;
- Depression leading to piling up of inventory;
- During strikes, lockouts, and national calamities like earthquakes, floods, fire, etc.
संबंधित प्रश्न
Explain the following as factors affecting the requirements of fixed capital:
Technology upgradation
Explain the following as factors affecting the requirements of working capital:
Seasonal factors
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’.
What is meant by capital gearing ratio?
Why is working capital also known as circulating capital?
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.
What is fixed capital?
Why do the large funds involved in capital budgeting require detailed analysis?
How does Choice of Technique affect fixed capital requirement?
How does leasing affect fixed capital requirement?
