Advertisements
Advertisements
Question
Explain the following term/concept:
Fixed capital
Advertisements
Solution
Fixed capital is capital used to buy fixed assets that are used for a longer period of time in the business. These assets are not meant for resale. In simple words, fixed capital refers to capital invested in acquiring fixed assets. It stays in the business for a long period, almost permanently. Examples of fixed capital are capital used for purchasing land and buildings, furniture, plants and machinery, etc. Such capital is required at the time of the establishment of a new company.
APPEARS IN
RELATED QUESTIONS
Select the correct answer from the options given below and rewrite the statement.
When the population is increasing at high rate, certain manufacturers find this as an opportunity to ______ business.
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.
Capital needed to acquire fixed assets which are used for longer period of time.
Write a word or a term or a phrase which can substitute the following statement.
The process of converting raw material into finished goods.
Complete the sentence.
The process of converting raw material into finished goods is called ______
Answer in one sentence.
What is fixed capital?
Explain the following term/concept.
Fixed capital
Justify the following statement.
There are various factors affecting the requirement of working capital.
Explain the following term/concept:
Production Cycle
Explain the following term/concept in detail:
Overhead
Distinguish between Fixed Capital and Working Capital.
Distinguish between the following.
Fixed Capital and Working Capital.
Liberal credit policy creates a problem of bad debts.
Liberal credit policy creats a problem of bad debts.
Liberal credit policy creates a problem of bad debts.
Distinguish between the following.
Fixed Capital and Working Capital.
Liberal credit policy creates a problem of bad debts.
Distinguish between the following.
Fixed Capital and Working Capital.
