Question : It is meant for making permanent or long term needs of the business. Which concept is highlighted in the given statement?
Option 1: Fixed capital
Option 2: Working capital
Option 3: Capital structure
Option 4: None of the above
Correct Answer: Fixed capital
Solution : Fixed capital is the money invested in fixed assets which is to be used over a long period of time. Fixed capital is made for meeting permanent or long term needs of the business.
Hence, option A is correct.
Question : It is the money invested in fixed assets which is to be used over a long period of time. Which capital is highlighted in the given statement?
Option 1: Working capital
Option 2: Fixed capital
Question : Which feature of capital market is highlighted in the given statement? Statement: It is the nature the capital market to satisfy the long term financial needs of the government industrial sector.
Option 1: Long term securities
Option 2: Long term financing requirement
Option 3: Creating liquidity
Question : It refers to that part of total capital which is required for holding current assets. Which concept is highlighted in the given statement?
Question : It is defined as excess of current assets over current liabilities. Which concept is highlighted in the given statement?
Option 3: Captian structure
Question : Which of the following statements is incorrect?
Option 1: Fixed capital affects the long term growth of the business.
Option 2: Fixed capital involves large amount of funds.
Option 3: There is no risk involved in fixed capital.
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