Question
One of the approaches of Working Capital Management,
where the company takes a strategy by which it finances all funds requirements with long-term funds for emergencies or unexpected outflows is known as:Solution
The conservative approach involves relying on long-term funds to finance both permanent and temporary working capital needs. This strategy aims to minimize short-term debt and reduce the risk of being unable to meet obligations in times of financial stress. It prioritizes stability and liquidity over maximizing returns, leading to a cautious and conservative management of working capital.
An auditor resigns from a listed company. Within how many days must they file Form ADT-3?
Which of the following is classified as financing cash flow?
A company is planning a capital raise of ₹20 lakh, with 60% from equity (cost 16%) and 40% from debt (cost 10%). If the tax rate is 30%, calculate its...
As per the Nayak committee, what percentage of its annual projected turnover should an MSME get as working capital from a bank?
Which of the following is not a payment product of NPCI?
A project has NPV of ₹5 lakh and standard deviation of cash flows is high. What does it indicate?
Omega Ltd. has idle capacity and receives a special export order for 2,000 units at ₹420 per unit. Normal price = ₹500. Unit variable cost = ₹350....
Which of the following is NOT a direct party to a Letter of Credit (LC)?
An enterprise consumes 25,600 units of a component annually. The order cost is ₹600 per order, and carrying cost is ₹12/unit/year. A supplier offers...
_________ is NOT a part of Monte Carlo Simulation.
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