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Question
Write a word or a term or a phrase which can substitute the following statement :
The difference between current assets and current liabilities.
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Solution
Working Capital.
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RELATED QUESTIONS
Answer the following question:
The Return on Investment (ROI) of a company ranges between 10 - 12% for the past three years. To finance its future fixed capital needs, it has the following options for borrowing debt:
Option ‘A’: Rate of interest 9%
Option ‘B’: Rate of interest 13%
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Explain the following as factor affecting the requirements of fixed capital:
Choice of technique
Explain the following as factors affecting the requirements of working capital:
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Name the method through which the company decided to raise additional capital.
Amrit is running a ‘transport service’ and earning good returns by providing this service to industries. Giving reason, state whether the working capital requirement of the firm will be ‘less’ or ‘more’.
Ramnath is into the business of assembling and selling of televisions. Recently he has adopted a new policy of purchasing the components on three months credit and selling the complete product in cash. Will it affect the requirement of working capital? Give reason in support of your answer.
How does working capital affect both the liquidity as well as profitability of a business?
Fixed Capital Working Capital
Answer the question.
Briefly explain any four types of working capital required by a business concern.
Current assets are those assets which get converted into cash
______ refers to the decisions regarding where to invest so as to earn the highest possible returns on investment.
Net working capital may be defined as the:
Fixed capital is financed through:
Which group consists of fixed assets?
Why do capital budgeting decisions matter for long-term growth?
How does Choice of Technique affect fixed capital requirement?
How does leasing affect fixed capital requirement?
