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प्रश्न
Liberal credit policy creates a problem of bad debts.
पर्याय
True
False
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उत्तर
This statement is True.
Explanation:
If the firm does not get a credit facility for purchases but adopts a liberal credit policy for its sales, it requires more working capital. On the other hand, if credit terms of purchases are favourable and terms of credit sales are less liberal, then the cash requirement will be less.
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संबंधित प्रश्न
State whether the following statement is true or false.
The business will require huge funds if assets are acquired on a lease basis.
Answer in one sentence.
What is fixed capital?
Justify the following statement.
Fixed capital stays in the business almost permanently.
Discuss the factors determining working capital requirement.
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.
Liberal credit policy creates a problem of bad debts.
Liberal credit policy creats a problem of bad debts.
Liberal credit policy creates a problem of bad debts.
Explain the following term/concept:
Fixed capital
Liberal credit policy creates a problem of bad debts.
Distinguish between the following.
Fixed Capital and Working Capital.
Distinguish between the following.
Fixed Capital and Working Capital.
Distinguish between the following.
Fixed Capital and Working Capital
Liberal credit policy creates a problem of bad debts.
Distinguish between Fixed Capital and Working Capital.
Distinguish between the following.
Fixed Capital and Working Capital.
