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प्रश्न
Explain the following as factor affecting the requirements of fixed capital:
Natural of business
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उत्तर
Nature of business: The given company deals in manufacturing (having a large operating cycle), so it requires large fixed capital. Firms involved in a large operating cycle require higher fixed capital.
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संबंधित प्रश्न
Big retail stores requires large amount of ............................. capital.
- Fixed
- Working
- Loan
Answer the following question:
In the paint industry, various raw materials are mixed in different proportions with petroleum for manufacturing different kinds of paints. One specific raw material is not readily and regularly available to the paint manufacturing companies. Bonler Paints Company is also facing this problem and because of this, there is a time lag between placing the order and the actual receipt of the material. But once it receives the raw materials, it takes less time in converting it into finished goods.
Identify the factor affecting the working capital requirements of this industry.
Answer the following question.
Explain briefly any four factors affecting the fixed capital requirements of an organisation.
'Indian Logistics' has its own warehousing arrangements at key locations across the country. Its warehousing services help business firms to reduce their overheads, increase efficiency and cut down distribution time.
A state with reason, whether the working capital requirements of 'Indian Logistics' will be high or low.
‘Reliable Transport Services Ltd.’ specialises in transporting fruits and vegetables. It has a good reputation in the market as it delivers the fruits and vegetables at the right time and at the right place.
A state with reason whether the working capital requirements of ‘Reliable Transport Services’ will be high or low.
How does 'Inflation' affect the working capital requirements of a company? State.
Explain the following as factor affecting the requirements of fixed capital:
Diversification
Explain the following as factor affecting the requirement of working capital:
Business cycle
Explain the following as a factor affecting the requirement of working capital:
Level of competition
What are the factors affecting requirement of fixed capital?
What is Working Capital? Factors affecting requirement of Working capital?
Answer the following question.
You are the finance manager of a newly established company. The Directors have asked you to determine the amount of fixed capital requirements for the company. Explain any five factors that you will consider while determining the fixed capital requirement for the company.
Discuss in brief any four factors that affect the working capital requirement of a company.
Higher debt-equity ratio results in
Which fund in an organisation possess finance for day to day operations
The capital structure of XYZ Ltd. is highly geared. Explain any four factors that were considered by its Finance Manager while formulating such a capital structure for the company.
