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प्रश्न
Explain the following term/concept:
Production Cycle
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उत्तर
The process of converting raw material into finished goods is called the production cycle. If the period of the production cycle is longer, then the firm needs more amount of working capital. If the manufacturing cycle is short, it requires less working capital.
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संबंधित प्रश्न
Select the correct answer from the options given below and rewrite the statement.
______ refers to the excess of current assets over current liabilities.
Write a word or a term or a phrase which can substitute the following statement.
Capital needed to acquire fixed assets which are used for longer period of time.
Write a word or a term or a phrase which can substitute the following statement.
The excess of current assets over current liabilities.
State whether the following statement is true or false.
The business will require huge funds if assets are acquired on a lease basis.
State whether the following statement is true or false.
The business dealing in luxurious products will require huge amount of working capital.
State whether the following statement is true or false.
A firm with large scale operations will require more working capital.
State whether the following statement is true or false.
Financial institutions and banks cater to the working capital requirement of business.
Complete the sentence.
The process of converting raw material into finished goods is called ______
Explain the following term/concept.
Working capital
Justify the following statement.
Fixed capital stays in the business almost permanently.
Distinguish between the following.
Fixed Capital and Working Capital.
Liberal credit policy creates a problem of bad debts.
Distinguish between the following.
Fixed Capital and Working Capital.
Explain the following term/concept:
Fixed capital
Distinguish between the following.
Fixed Capital and Working Capital
Liberal credit policy creates a problem of bad debts.
Liberal credit policy creates a problem of bad debts.
Distinguish between the following.
Fixed Capital and Working Capital.
