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प्रश्न
Explain the following as factors affecting the requirements of working capital:
Nature of business
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उत्तर
Working capital refers to current assets which help in day-to-day business operations.
Nature of business: A company which deals in trading or services will require low working capital because it manages a small operating cycle and absence of processing. On the other hand, a company manages a large operating cycle will require high working capital as the conversion of raw materials into the finished product before the end of sale transaction.
Manufacturing organisations ⇒ High working capital
Trading/Service organisations ⇒ Low working capital
संबंधित प्रश्न
Explain the following as factor affecting the requirements of fixed capital:
Choice of technique
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
Explain the following as factors affecting the requirement of working capital:
The credit allowed and availed
Write a word or a term or a phrase which can substitute the following statement :
The difference between current assets and current liabilities.
______ of a firm refers to those assets which can be converted into cash or cash equivalents in a short period of time.
______ refers to the decisions regarding where to invest so as to earn the highest possible returns on investment.
How long do fixed assets last?
Which group consists of current assets?
What is fixed capital?
Through which sources must fixed capital be financed?
Which set of activities is covered by expenditure on fixed capital?
Why do capital budgeting decisions matter for long-term growth?
How does Choice of Technique affect fixed capital requirement?
How does Diversification affect fixed capital?
How does leasing affect fixed capital requirement?
How does the Level of Collaboration affect each firm's fixed asset investment?
