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प्रश्न
Justify the following statement.
Fixed capital stays in the business almost permanently.
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उत्तर
Justification:
- Fixed capital is the capital which is used to purchase fixed assets of the business.
- These fixed assets are used for a longer period of time and are not meant for resale.
- In other words, fixed capital refers to the capital invested for acquiring fixed assets.
- Examples of fixed capital are capital used for purchasing land and building, furniture, plant and machinery etc. Hence, fixed capital stays in the business almost permanently.
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संबंधित प्रश्न
Distinguish between Fixed capital and Working capital.
Match the correct pairs:
| Group 'A' | Group 'B' | ||
| (1) | Working capital | (a) | Redeemed capital |
| (2) | Equity share capital | (b) | Secretary |
| (3) | Share warrant | (c) | Shares do not have distinctive numbers |
| (4) | Recommendation of dividend | (d) | Fixed assets |
| (5) | Fungibility | (e) | The link between SEBI and Depository |
| (f) | Board of Directors | ||
| (g) | Registered document | ||
| (h) | Sum of current assets | ||
| (i) | Bearer document | ||
| (j) | Permanent capital |
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 boom and recession cycle in the economy
Fixed capital is also referred as circulating capital.
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.
A firm with large scale operations will require more working capital.
Explain the following term/concept.
Fixed capital
Justify the following statement.
There are various factors affecting the requirement of working capital.
Justify the following statement.
The nature of business affects the working capital requirement.
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.
Liberal credit policy creates a problem of bad debts.
