The funds required by 'Snapdeal' to advertise in the newspapers is an example of.
(i)Ploughing back of profits
(ii)Trade credit
(iii)Fixed capital requirements
(iv)Working capital requirements
Answers
The funds required by 'Snapdeal' to advertise in the newspapers is an example of (iv)Working capital requirements.
Hope it will help you then please mark me brainliest
Answer: option IV
The 'Ploughing Back of Profits' is a management policy under which all profits are not distributed amongst the shareholders, but a part of the profit is 'Ploughed back' or retained in the company. ... Since it means dependence on internal sources for meeting the financial needs of the company.
Trade credit is the loan extended by one trader to another when the goods and services are bought on credit. Trade credit facilitates the purchase of supplies without immediate payment. Trade credit is commonly used by business organisations as a source of short-term financing.
The requirement of fixed capital depends upon various factors which are explained below:
Nature of Business:
Scale of Operation:
Technique of Production:
Technology Up-gradation:
Growth Prospects:
Diversification:
Availability of Finance and Leasing Facility:
Level of Collaboration/Joint Ventures:
Working Capital Requirement is the amount of money needed to finance the gap between disbursements (payments to suppliers) and receipts (payments from customers). Almost every company must incur expenses before obtaining the fruits of his labor (the payment of customer invoices).