Advertisements
Advertisements
Question
Justify the following statement.
Fixed capital stays in the business almost permanently.
Advertisements
Solution
Justification:
- Fixed capital is the capital which is used to purchase fixed assets of the business.
- These fixed assets are used for a longer period of time and are not meant for resale.
- In other words, fixed capital refers to the capital invested for acquiring fixed assets.
- Examples of fixed capital are capital used for purchasing land and building, furniture, plant and machinery etc. Hence, fixed capital stays in the business almost permanently.
APPEARS IN
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 |
| (4) | Recommendation of dividend | (d) | Fixed assets |
| (5) | Fungibility | (e) | The link between SEBI and Depository |
| (f) | Board of Directors | ||
| (g) | Registered document | ||
| (h) | Sum of current assets | ||
| (i) | Bearer document | ||
| (j) | Permanent capital |
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.
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 sum of current assets.
Fixed capital is also referred as circulating capital.
Explain the following term/concept.
Fixed capital
State any four factors affecting fixed capital requirement.
Fixed capital is also referred as circulating capital.
Justify the following statement.
The nature of business affects the working capital requirement.
Distinguish between Fixed Capital and Working Capital.
Distinguish between the following.
Fixed Capital and Working Capital.
Liberal credit policy creats a problem of bad debts.
Liberal credit policy creates a problem of bad debts.
Explain the following term/concept:
Fixed capital
Liberal credit policy creates a problem of bad debts.
Distinguish between the following.
Fixed Capital and Working Capital.
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.
