English

State whether the following statement is true or false. Financial institutions and banks cater to the working capital requirement of business.

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Question

State whether the following statement is true or false.

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

Options

  • True

  • False

MCQ
True or False
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Solution

Financial institutions and banks cater to the working capital requirement of business. - 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) 10. | 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.

The sum of all ______ is gross working capital.


Write a word or a term or a phrase which can substitute the following statement.
The sum of current assets.


Write a word or a term or a phrase which can substitute the following statement.
The process of converting raw material into finished goods.


State whether the following statement is true or false.

The business will require huge funds if assets are acquired on a lease basis.


State whether the following statement is true or false.

The business dealing in luxurious products will require huge amount of working capital.


Liberal credit policy creates a problem of bad debts.


Initial planning of capital requirement is made by______.


Complete the sentence.

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


State any four factors affecting fixed capital requirement.


Justify the following statement.

Fixed capital stays in the business almost permanently.


Discuss the factors determining working capital requirement.


Fixed capital is also referred as circulating capital.


Explain the following term/concept in detail:

Overhead


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.


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