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प्रश्न
Ramnath is into the business of assembling and selling of televisions. Recently he has adopted a new policy of purchasing the components on three months credit and selling the complete product in cash. Will it affect the requirement of working capital? Give reason in support of your answer.
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उत्तर
Working capital is the amount of capital required for meeting the day-to-day operations of the business. In this case, Ramnath is purchasing the components of television on 3 months of credit, and selling the company's product in cash. His working capital requirement is reduced to the extent of credit availed by him.
संबंधित प्रश्न
Explain the following as factor affecting the requirements of fixed capital:
Choice of technique
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Financing alternatives
Explain the following as factors affecting the requirements of working capital:
Nature of business
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Fixed Capital Working Capital
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