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Explain the following term/concept: Production Cycle

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Question

Explain the following term/concept:

Production Cycle

Short/Brief Note
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Solution

The process of converting raw material into finished goods is called the production cycle. If the period of the production cycle is longer, then the firm needs more amount of working capital. If the manufacturing cycle is short, it requires less working capital.

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2021-2022 (March) Set 1

RELATED QUESTIONS

Match the correct pairs: 

  Group 'A'   Group 'B'
(1) Working capital (a) Redeemed capital
(2) Equity share capital (b) Secretary
(3) Share warrant (c) Shares do not have distinctive numbers
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A firm with large scale operations will require more working capital.


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Financial institutions and banks cater to the working capital requirement of business.


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The process of converting raw material into finished goods is called ______


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There are various factors affecting the requirement of fixed capital.


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Explain the following term/concept in detail:

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