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प्रश्न
Explain the following as factors affecting the requirements of fixed capital:
Financing alternatives
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उत्तर
Financing alternatives:
If leasing facilities are available without any lengthy procedures in the financial market, then the fixed capital requirements will be less.
Non-availability of financing alternatives ⇒ More fixed capital
Availability of financing alternatives ⇒ Less fixed capital
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संबंधित प्रश्न
Explain the following as factors affecting the requirements of working capital:
Seasonal factors
Explain the following as factors affecting the requirements of working capital:
Production cycle
Varunica Ltd., a reputed truck manufacturing company, needs rupees twenty crores as additional capital to expand its business. Mr. Alind Jindal, the CEO of the company, wants to raise funds through equity. The Finance Manager, Mr. Nikhil Sachdeva, suggests that the existing shareholders be offered the privilege to subscribe to new issue of shares as per the terms and conditions of the company which was agreed by Mr. Alind Jindal.
Name the method through which the company decided to raise additional capital.
State, with reason, whether the following statement is True or False.
Requirement of working capital does not depend upon any factor.
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What is working capital?
Fixed Capital Working Capital
What is meant by capital gearing ratio?
Explain any four factors that affect the capital structure of a company.
Higher dividend per share is associated with
Which of the following factors highlight the importance of capital budgeting decisions
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.
How long do fixed assets last?
Which group consists of fixed assets?
What are decisions about investment in long-term assets called?
Which list contains long-term sources for financing fixed capital?
Which sources should never be used to finance fixed assets?
Why do the large funds involved in capital budgeting require detailed analysis?
How does Diversification affect fixed capital?
How does leasing affect fixed capital requirement?
