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loans from the financial institutions financial institutions such as the commercial bank life insurance corporation industries financial development
plugging back of the future of profit means the reinvestment by the concerns of its surplus in the business it is an internal financial of the
q what do you mean by public depositspublic deposits are the fixed deposited by the business enterprises directly from the company this source of the
q what is debenturesdebentures a debenture is an instrument issued by the company acknowledge its debts to its holders it is also an important
q what do you mean by sharesshares issue of the share is the most important source of the long terms capital a company can issue various type of the
q rate of the growth of the businessthe working capital requirement of the a concern increase with the growth and expansion of the business
q what do you understand by business cyclebusiness cycle business cycle refers to the alternate expansion and contraction in the general business
q what do you mean by credit policycredit policy the credit policy of the concern in its dealing with the debtors and the creditors influencly
q explain rate of the stock turnoverrate of the stock turnover this is high degree of the inverse co relation between the quantum of the working
q working capital cyclein a manufacturing concern the working capital cycle is start with the purchase of the raw material and ends with the
size of the business scale of the operation the working capital requirement of the concern are directly influence the by the size of the business
q nature of the businessthe working capital requirement of the firm basic depends upon the nature of the business public utility undertaking like
q objective of the businessworking capital is needed for the following purposesfor the purpose of the raw material components and sparesto pay the
q disadvantage or redundancy of excessive working capitalexcessive working capital means idle funds which earns no profit for the business operation
every business concern should have neigh adequate capital to run the business operations it should have neither redundant nor excess working capital
q show quick and regular returns of the investmentsquick and regular returns of the investments every investor wants a quick and regular returns on
q importance or advantage of the working capitalworking capital is the lifeblood and never centres of the business just like a blood that necessary
q what do you mean by variable working capitalpermanent or fixed permanent or fixed working capital is the minimum amount which is required to ensure
q show gross vs net working capitalthe distinction between the gross working capital or the net working capital does not in any way undermine the
q working capital managementevery business needs funds for the two purposes for its establishments and to carry out day to day operations long terms
q show security market linethe cml represent the equilibrium relation between the expected return and standard for efficient portfolio but it does
q capital market linewhen their exists complete agreement between all investor with regards to a security expected return variance and covariance as
portfolio theory tries to the explain the equilibrium rate of return or the price fixation in capital market through the two important relationship
risk free assets is one for which there is no uncertainty in its expected rate of return and hence the standard deviation of such return is zero
q show additively of betasit is indicated earlier that any risk unique to an individual security can be removed by diversification however as