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प्रश्न
Fixed capital is also referred as circulating capital.
पर्याय
True
False
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उत्तर
The statement is False.
Explanation:
Long-term investments in land, buildings, machinery, and equipment with no immediate cash flow are called fixed capital. These support business processes. However, circulating capital includes short-term assets like inventories, raw materials, and cash that are consumed and renewed during the economic cycle.
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संबंधित प्रश्न
Write a word or a term or a phrase which can substitute the following statement.
The sum of current assets.
State whether the following statement is true or false.
The business will require huge funds if assets are acquired on a lease basis.
Liberal credit policy creates a problem of bad debts.
Complete the sentence.
The process of converting raw material into finished goods is called ______
State any four factors affecting fixed capital requirement.
Justify the following statement.
There are various factors affecting the requirement of fixed capital.
Justify the following statement.
Fixed capital stays in the business almost permanently.
Justify the following statement.
There are various factors affecting the requirement of working capital.
Fixed capital is also referred as circulating capital.
______ capital is used to carry out day-to-day business activities.
Justify the following statement.
The nature of business affects the working capital requirement.
Distinguish between Fixed Capital and Working Capital.
Distinguish between the following.
Fixed Capital and Working Capital
Explain the following term/concept:
Fixed capital
Liberal credit policy creates a problem of bad debts.
Liberal credit policy creates a problem of bad debts.
Distinguish between Fixed Capital and Working Capital.
Liberal credit policy creates a problem of bad debts.
