What is Working Capital? State factors affecting requirement of working capital.

Answer: Working Capital and Factors Affecting Requirement. Meaning of Working Capital: Working capital means current assets or circulating capital. Experts define working capital in both, narrow as well as broad sense. In the narrow sense, it is defined as “the difference between […]

What is Capital Structure? What are the internal and external factors influencing Capital Structure?

Answer: Capital Structure & Internal and External influencing Capital Structure. Meaning – Capital Structure constitutes two words i.e. Capital and Structure. The word ‘capital’ refers to the investment of funds in business while ‘structure’ means arrangement of different components in proper proportion. Capital […]

What is Fixed Capital? State factors affecting requirement of Fixed Capital.

Answer: Fixed Capital and its Factors Affecting Requirement. Meaning:  Fixed capital is that portion of total capital which is invested in fixed assets such as, land, building, equipments, machinery etc. It may be held in business for 5, 10 or 20 years […]

Write a short note on: Capital Structure and its components.

Answer: Capital Structure and its components.  Meaning:             Capital Structure constitutes two words i.e. Capital and Structure. The word ‘Capital’ refers to the investment of funds in business while ‘Structure’ means  arrangement of different components in […]

State the importance of financial Planning.

Answer: Importance of Financial Planning.           The finance manager gets entire information about his firm’s activities and on that basis, he prepares a financial plan. The financial plan so prepared becomes crucial with respect to decision making. The […]

What is the meaning of financial planning? Define the financial planning.

Answer:  Meaning  & Definition of financial planning.          Meaning: The term ‘financial planning’ refers to assessment of financial requirements and arranging the sources of capital. It is required not only to increase profit but also for survival of the […]

What are the objectives of financial management?

Answer: Objectives of Financial Management?        According to Kuchal S. C., “Financial Management deals with procurement of funds and their effective utilization in business”. The basic objectives of financial management are stated as follows: I. Profit Maximization, II. Wealth Maximization […]