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प्रश्न
Why is working capital also known as circulating capital?
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उत्तर
Working capital is the portion of capital invested in the short-term assets of a business. It consists of cash receipts from sales which are used to cover the cost of current operations. It is also known as circulating capital as it keeps circulating or revolving in business. It is invested, recovered and reinvested repeatedly during the business cycle.
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संबंधित प्रश्न
Explain the following as factors affecting the requirements of working capital:
Seasonal factors
Explain the following as factors affecting the requirements of working capital:
Production cycle
Amrit is running a ‘transport service’ and earning good returns by providing this service to industries. Giving reason, state whether the working capital requirement of the firm will be ‘less’ or ‘more’.
How does working capital affect both the liquidity as well as profitability of a business?
Companies with a higher growth potential are likely to
A fixed asset should be financed through
Which of the following factors highlight the importance of capital budgeting decisions
Net working capital may be defined as the:
Fixed capital is financed through:
