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Gaurav Seth 7 years ago
Working capital is required in day to day operations of business
Working capital is required by a business for the purchase of raw materials and for meeting day-to-day expenses such as wages, salaries, rents, taxes, interest, etc. It may be defined as the capital invested in the working or current assets, such as raw materials, semifinished goods, finished goods, debts recoverable from the customers to whom goods have been sold on credit, and so on. Working capital is also referred to as the circulating capital or revolving capital.
Posted by Shruti Gupta 7 years ago
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Gaurav Seth 7 years ago
Firms usually keep a certain part of the profits earned before distributing dividends to their shareholders. These undistributed profits are retained in the business for future use and are known as retained earnings. Retained earnings
are called self financing as a part of these funds are reinvested in the business.
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Gaurav Seth 7 years ago
Trade credit is the credit extended by one trader to another for the purchase of goods and services. Trade credit facilitates the purchase of supplies without immediate payment such credit appears in the records of the buyer of goods as ‘sundry creditors’ or ‘accounts payable’.
Merits of trade credit are as follows:
1. Trade credit is convenient and continuous source of funds.
2. Trade credit may be readily available in case the credit worthiness of the customers is known to the seller.
3. Trade credit needs to promote the sales of an organisation.
4. It an organisation wants to increase its inventory level in order to meet expected rise in the sales volume in the near future, it may use trade credit to, finance the same.
5. It does not create any charge on the assets of the firm while providing funds.
Demerits are as follows :
1. Availability of easy and flexible trade credit facilities may induce a firm to indulge in overtrading, which may add to the risks of the firm.
2. Only limited amount of funds can be generated through trade credit.
3. It is generally a costly source of funds as compared to most other sources of raising money.
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Yogita Ingle 7 years ago
1) Multinational Coorporation is a large company that owns or regulate production across nations.
2) They set up offices and factories where they get favorable factor such as availability of raw materials,cheap skilled and unskilled labours,transport and market and most importantly liberalised(free of trade restriction)government policies.
Example : Cargill foods ,ford motors etc.
Posted by Uddeshya Srivastav 7 years ago
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Yogita Ingle 7 years ago
1) Multinational Coorporation is a large company that owns or regulate production across nations.
2) They set up offices and factories where they get favorable factor such as availability of raw materials,cheap skilled and unskilled labours,transport and market and most importantly liberalised(free of trade restriction)government policies.
Example : Cargill foods ,ford motors etc.

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Dolly ?️ 7 years ago
1Thank You