Commerce Quiz

There are 2 concepts of working capital- gross and

• cumulative

• net

• distinctive

• zero

_________ working capital refers to the firm’s investment in current assets

• floating capital

• gross capital

• net capital

• permanent capital

1. Fixed capital requirements are determined by ______

• Business Environment

• nature of government control

• nature of business

• nature of marketing efforts

Which of the following factors affects the fixed capital

• intangible assets

• manufacturing cycle

• public image of business

• all of the above

1. Read the following statements:

1. Working capital is the amount of funds necessary to cover the cost of operating the enterprise

2. Fixed capital refers to the funds required for acquisition of fixed assets

• 1 and 2 both are correct

• 1 and 2 both are wrong

• 1 is wrong

• 2 is wrong

which of this is not a source of finance for sole proprietorship business?

• personal loans from relatives

• retained earnings

• issue of shares

• short term assistance provided by government

which of this type of capital can be classified as temporary working capital-

• seasonal working capital

• initial working capital

• regular working capital

• All of these

Net working capital refers to-

• Current assets- Current liability

• Current liabilities- Current Assets

• Current Assets + Current Liabilities

• Fixed Asset + Current Liabilities

circulating capital is also known as

• block capital

• working capital

• floating capital

• rotating capital

how is the fixed capital affected by using capital intensive technique of production-

• the usage of fixed capital is decreased

• the usage of fixed capital is increased

• no effect on fixed capital

• none of the above