Question

1]A FIRM SELLING ON CREDIT TERMS require____ working capital
a] lss
b] more
c] none
2]the ____ capital stays in business almost permanently
a] working
b]debt
c]fixed

Answer 1

1 .answer is more .2. answer is fixed.

Answer 2

1]A firm selling on credit term requires more working capital.

2]The fixed capital stays in business almost permanently.

Explanation:

Selling on credit means the sell for which the payment will be done later.

Working capital is the net amount the specific company or organization needs to perform day to day operations.

So if a company is allowing customer to pay for their service or product later so for sure it will need more working capital initially to undergo it's operations.

Fixed capital is the form of capital asset that is used repeatedly for production of various products.

For purchasing furniture, land properties, machineries, plant the fixed capital is used, so it always remains in business.

It is the fixed value which is durable and permanent and that's why it stays in business almost permanently.