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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
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.
The sum of all ______ is gross working capital.
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 process of converting raw material into finished goods.
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 dealing in luxurious products will require huge amount of working capital.
Initial planning of capital requirement is made by______.
Complete the sentence.
The process of converting raw material into finished goods is called ______
Answer in one sentence.
What is fixed capital?
Discuss the factors determining working capital requirement.
Fixed capital is also referred as circulating capital.
______ capital is used to carry out day-to-day business activities.
Distinguish between Fixed Capital and Working Capital.
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.
Explain the following term/concept:
Fixed capital
Distinguish between the following.
Fixed Capital and Working Capital
Distinguish between the following.
Fixed Capital and Working Capital
