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Questions and Answers
What does capital budgeting primarily deal with?
What does capital budgeting primarily deal with?
What is the key determinant of success for any business function?
What is the key determinant of success for any business function?
What is another term for the capital needed to acquire fixed assets used for a longer period?
What is another term for the capital needed to acquire fixed assets used for a longer period?
Which statement best describes the process of converting raw material into finished goods?
Which statement best describes the process of converting raw material into finished goods?
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What does corporate finance aim to achieve in relation to business activities?
What does corporate finance aim to achieve in relation to business activities?
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True or False: Fixed capital is commonly referred to as circulating capital.
True or False: Fixed capital is commonly referred to as circulating capital.
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What is one way commercial banks assist corporate enterprises?
What is one way commercial banks assist corporate enterprises?
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Which of the following is NOT mentioned as a way commercial banks provide short-term finance?
Which of the following is NOT mentioned as a way commercial banks provide short-term finance?
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What is the primary source of financing working capital for businesses in India?
What is the primary source of financing working capital for businesses in India?
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Which scheme allows a company to overdraw funds up to a sanctioned credit limit?
Which scheme allows a company to overdraw funds up to a sanctioned credit limit?
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What determines the interest in an overdraft facility provided by commercial banks?
What determines the interest in an overdraft facility provided by commercial banks?
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What is the purpose of underwriting the issue of securities by commercial banks for a company?
What is the purpose of underwriting the issue of securities by commercial banks for a company?
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How does an increase in volume of sales affect the amount of working capital?
How does an increase in volume of sales affect the amount of working capital?
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What is the impact of a longer production cycle on the working capital requirement?
What is the impact of a longer production cycle on the working capital requirement?
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During a recession, what happens to the need for working capital?
During a recession, what happens to the need for working capital?
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How does adopting a liberal credit policy for sales impact the working capital requirement?
How does adopting a liberal credit policy for sales impact the working capital requirement?
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What factor can help a company improve its cash flow according to the text?
What factor can help a company improve its cash flow according to the text?
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How does a boom in the economy affect the working capital needs of a firm?
How does a boom in the economy affect the working capital needs of a firm?
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What does fixed capital refer to?
What does fixed capital refer to?
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When is fixed capital usually required by a new company?
When is fixed capital usually required by a new company?
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How do companies estimate their fixed capital requirements?
How do companies estimate their fixed capital requirements?
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Where can an entrepreneur obtain funds for purchasing fixed assets?
Where can an entrepreneur obtain funds for purchasing fixed assets?
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Why has estimating fixed capital requirement gained significance in recent years?
Why has estimating fixed capital requirement gained significance in recent years?
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Which type of businesses usually need to invest substantial funds in acquiring fixed assets?
Which type of businesses usually need to invest substantial funds in acquiring fixed assets?
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What is another name for Authorised Capital?
What is another name for Authorised Capital?
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Which part of the Authorised Capital is offered to prospective investors for subscription?
Which part of the Authorised Capital is offered to prospective investors for subscription?
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What is Unissued Capital in relation to a company's capital structure?
What is Unissued Capital in relation to a company's capital structure?
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Which term refers to the part of Issued Capital that has been subscribed or taken up by investors?
Which term refers to the part of Issued Capital that has been subscribed or taken up by investors?
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Can a company's Issued Capital be greater than its Authorised Capital?
Can a company's Issued Capital be greater than its Authorised Capital?
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What is the relationship between Subscribed Capital and Issued Capital?
What is the relationship between Subscribed Capital and Issued Capital?
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