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Q. Define Working Capital.
Ans. Introduction: - Working capital plays the similar role in the business as the role of heart in the human body. Just like heart gets blood as well as circulates the same in the body, in the similar way in working capital, funds are generated as well as then circulated in the business. As and when this flow stops the business becomes lifeless. Therefore prudent management of Working capital is necessary for the success of a business.
Why does a tax create a deadweight loss? What determines the size of this loss? A tax makes deadweight loss by artificially increasing price above the free market level, so de
Balance Sheet Equation Concept The Historical Cost Concept needs support of two other concepts for practical reasons, viz. (i) The Money Measurement Concept (already discus
What are the objectives of the Insurance Companies? Insurance companies: The main objective of insurance companies is to prevent individuals and firms (termed as policy-h
Convertible bonds can be classified into different types such as callable bonds and puttable bonds. These bonds are discussed as follows: Basics of Callable Bonds A callabl
Which ratios would a potential long-term bond investor be most interested in? Explain. Potential and Current lenders of long-term funds, like banks and bondholders, are interest
Explain and compare the costs of hedging via the forward contract and the options contract. Answer: There is no up-front cost of hedging through forward contracts. Though, in t
Carrefour & Tesco
. Why do some organizations seem to have a new CEO every year or two, whereas others have top leaders who stay with the company for many years (e.g., John Chambers at Cisco)? What
one page paper reviewing "the Morgan Stanley Oil and Gas Report"
Describe in brief about finance Managing this flow of funds resourcefully is the purview of finance. So we can describe finance as the study of the methods that help us plan,
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