What is the need of capital ?

Solution

Capital is the lifeblood of business. If the procurement of capital is not made timely or it is inadequate then it will not be possible to achieve the goals of business. In present days, adequate capital is required to run the business efficiently and for establishment of new industries and for the development and growth of the existing ones. For the purchase of raw material for industries, and for fuel, land, building, equipment, etc. capital is needed.
The intense use of machines in industries since industrial revolution has increased the requirement of capital. To increase production much emphasis is laid on more and more use of capital.

Some More Questions From Sources of Business Finance Chapter

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Sources Of Business Finance

What is the need of capital ?

Some More Questions From Sources of Business Finance Chapter

Give meaning of short-term finance.

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Define preference shares.

Give meaning of equity share.

Give the meaning of debenture.

Define “Ploughing back of profits”.

Give meaning of trade credit.

Explain Bank Credit.

Give meaning of Lease Financing.

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