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State whether the following statement is true or false. A firm with large scale operations, will require more working capital. - Secretarial Practice

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Question

State whether the following statement is true or false.

A firm with large scale operations will require more working capital.

Options

  • True

  • False

MCQ
True or False
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Solution

A firm with large scale operations will require more working capital. - True

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Capital Requirements
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Chapter 1: Introduction To Corporate Finance - Exercises [Page 12]

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Balbharati Secretarial Practice [English] Standard 12 Maharashtra State Board
Chapter 1 Introduction To Corporate Finance
Exercises | Q 1. D) 8. | Page 12

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.

______ refers to any kind of fixed asset.


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.


Answer in one sentence.

What is fixed capital?


Explain the following term/concept.

Working capital


Justify the following statement.

There are various factors affecting the requirement of fixed capital.


Fixed capital is also referred as circulating capital.


______ capital is used to carry out day-to-day business activities.


Justify the following statement.

The nature of business affects the working capital requirement.


Liberal credit policy creats a problem of bad debts.


Distinguish between the following.

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 creates a problem of bad debts.


Liberal credit policy creates a problem of bad debts.


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