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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
Write a word or a term or a phrase which can substitute the following statement.
The sum of current assets.
Fixed capital is also referred as circulating capital.
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 ______
Explain the following term/concept.
Working 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.
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
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.
Explain the following term/concept:
Fixed capital
Liberal credit policy creates a problem of bad debts.
