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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 factor affecting the requirements of fixed capital:
Scale of operations
Explain the following as factors affecting the requirements of working capital:
Production cycle
State, with reason, whether the following statement is True or False.
Requirement of working capital does not depend upon any factor.
What is meant by capital gearing ratio?
Explain any four factors that affect the capital structure of a company.
Current assets of a business firm should be financed through
Which of the following factors highlight the importance of capital budgeting decisions
Which group consists of current assets?
Which list contains long-term sources for financing fixed capital?
Which set of activities is covered by expenditure on fixed capital?
