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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
Select the correct answer from the options given below and rewrite the statement.
______ refers to any kind of fixed asset.
Write a word or a term or a phrase which can substitute the following statement.
The sum of current assets.
Write a word or a term or a phrase which can substitute the following statement.
The process of converting raw material into finished goods.
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.
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 ______
Answer in one sentence.
What is fixed capital?
Justify the following statement.
There are various factors affecting the requirement of fixed capital.
Justify the following statement.
There are various factors affecting the requirement of working capital.
Explain the following term/concept in detail:
Overhead
Liberal credit policy creats a problem of bad debts.
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.
Liberal credit policy creates a problem of bad debts.
Distinguish between the following.
Fixed Capital and Working Capital
Distinguish between Fixed Capital and Working Capital.
Distinguish between the following.
Fixed Capital and Working Capital.
Liberal credit policy creates a problem of bad debts.
