Case study

The management of 'Metro One' wants to determine

the size of working capital.

Being a public utility service provider, will it require more or less working capital

• More

• Less

The management of 'Metro One' wants to determine

the size of working capital.

Being a public service utility, will it require more fixed capital

• Yes

• No

The management of 'Metro One' wants to determine

the size of working capital.

Give one example of public utility service that you come across on day-to-day basis.

• Indian Railways

• BEST

• MSEB

• Tata Power

A company is planning to enhance it’s production capacity and is evaluating the possibility

of purchasing new machinery whose cost is ` 2 crore or has alternative of machinery

available on lease basis.

What type of asset is the machinery?

• Working Asset

• Current Asset

• Fixed Asset

• None of the above

A company is planning to enhance it’s production capacity and is evaluating the possibility

of purchasing new machinery whose cost is ` 2 crore or has alternative of machinery

available on lease basis.

Capital used for machinery is Fixed Capital or working capital

• Fixed

• Working

A company is planning to enhance it’s production capacity and is evaluating the possibility

of purchasing new machinery whose cost is ` 2 crore or has alternative of machinery

available on lease basis.

Does the size of a business determine the fixed capital requirement ?

• Yes

• No

The Balance-sheet of SRKLP Ltd for the year 2020-21 reveals equity share capital

of Rs. 35,00,000 and retained earnings of Rs. 70,00,000.

a) Is the company financially sound ?

• Yes

• No

The Balance-sheet of SRKLP Ltd for the year 2020-21 reveals equity share capital

of Rs. 35,00,000 and retained earnings of Rs. 70,00,000.

Can the retained earnings be converted into capital

• Yes

• No

The Balance-sheet of SRKLP Ltd for the year 2020-21 reveals equity share capital

of Rs. 35,00,000 and retained earnings of Rs. 70,00,000.

What type of source retained earning is?

• Long term

• Short term

• external

• internal

Mr. Akhilesh Modi is a speculator. He desires to take advantage of growing market for company's

product and earn handsomely.

According to you which type of share Mr. Satish will choose to invest ?

• Preference Shares

• Equity Shares

• ESOPS

• Right Shares