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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
Define fixed capital.
💡 Hint: Think about what types of purchases are made for the long haul.
Question 2
Easy
What does working capital cover?
💡 Hint: Consider daily operations when thinking about this.
Practice 4 more questions and get performance evaluation
Interactive Quizzes
Engage in quick quizzes to reinforce what you've learned and check your comprehension.
Question 1
What is fixed capital?
- Short-term funds
- Long-term investments in assets
- Daily operational expenses
💡 Hint: Think of assets that last for several years.
Question 2
Working capital is needed for which of the following?
- Land purchases
- Salaries and raw materials
- Machinery upgrades
💡 Hint: Consider regular bills and costs.
Solve 1 more question and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
A company needs $50,000 for purchasing new machinery (fixed capital) and $20,000 for monthly operational costs (working capital). How should they balance their finances?
💡 Hint: Think about short-term vs. long-term financing strategies.
Question 2
What would happen if a business neglects its working capital needs despite having significant fixed capital?
💡 Hint: Consider the importance of liquidity in business.
Challenge and get performance evaluation