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प्रश्न
When XYZ company acquired a toy manufacturing company, it paid a large amount for the goodwill. Which source of business funds of XYZ company was impacted?
पर्याय
Fixed capital
Special working capital
Circulating capital
Gross working capital
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उत्तर
Fixed capital
Explanation:
Fixed capital refers to the finances required to acquire fixed assets that will be used continuously for business activities.
संबंधित प्रश्न
Explain briefly any four factors that affect the working capital requirement of a company.
Explain the following as factors affecting the requirement of working capital:
The credit allowed and availed
Write a word or a term or a phrase which can substitute the following statement :
The difference between current assets and current liabilities.
Fixed Capital Working Capital
Explain any four factors that affect the capital structure of a company.
Assertion (A): A commercial bill is a bill of exchange used to finance the working capital requirements of business firms.
Reason (R): Commercial bill is a short-term, negotiable, self-liquidating instrument which is used to finance the credit sales of firms.
Fixed capital is financed through:
Dhaval Acharya, after acquiring a bachelor’s degree in Hotel Management joined his father’s chain of vegetarian restaurants in Ahmednagar. Being young and enterprising, he suggested his father to add a new section of vegetarian bakery items which required an investment of ₹ 5 crores. His father Mr. Aariketh Acharya suggested him to take the decision with caution and understood everything comprehensively as bad decision may damage the financial fortune of business.
Identify the decision suggested by Mr. Aariketh Acharya. State by giving any three reasons as to why he must have advised his son to take decision with caution.
What are decisions about investment in long-term assets called?
What is the effect of higher expected growth on fixed capital?
