Advertisements
Advertisements
Question
Initial planning of capital requirement is made by______.
Advertisements
Solution
Initial planning of capital requirement is made by company's promoters.
Explanation:
Initial planning of fixed capital requirement is made by company's promoters. For this, they first prepare a list of fixed assets needed by the company and the cost of these assets is estimated. They collect information regarding the price of land, the cost of construction of the building, the cost of plant and machinery, etc.
APPEARS IN
RELATED QUESTIONS
Select the correct answer from the options given below and rewrite the statement.
______ refers to any kind of fixed asset.
Select the correct answer from the options given below and rewrite the statement.
______ refers to the excess of current assets over current liabilities.
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 ______
Explain the following term/concept.
Working capital
Justify the following statement.
There are various factors affecting the requirement of fixed capital.
Justify the following statement.
There are various factors affecting the requirement of working capital.
Discuss the factors determining working capital requirement.
Explain the following term/concept:
Production Cycle
______ capital is used to carry out day-to-day business activities.
Distinguish between Fixed Capital and Working Capital.
Liberal credit policy creates a problem of bad debts.
Liberal credit policy creates a problem of bad debts.
Distinguish between the following.
Fixed Capital and Working Capital.
Distinguish between the following.
Fixed Capital and Working Capital.
