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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 excess of current assets over current liabilities.
Write a word or a term or a phrase which can substitute the following statement.
The boom and recession cycle in the economy
Initial planning of capital requirement is made by______.
Explain the following term/concept.
Working capital
State any four factors affecting fixed capital requirement.
Justify the following statement.
There are various factors affecting the requirement of working capital.
Discuss the factors determining working capital requirement.
Explain the following term/concept:
Production Cycle
______ capital is used to carry out day-to-day business activities.
Distinguish between the following.
Fixed Capital and Working Capital.
Liberal credit policy creats 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.
Liberal credit policy creates a problem of bad debts.
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.
