Asked by DreamHome Furnishings on Jul 14, 2024
Verified
The firm's total capital requirement grows over time with amounts including the base level of fixed assets and current assets.There exists seasonal variation around the trend showing the required temporary working capital.
Temporary Working Capital
The additional working capital needed to support fluctuations in business activity above the normal level.
Capital Requirement
The amount of capital a bank or financial institution must hold to shield against financial risk and comply with regulatory standards.
- Understand the methods for overseeing and funding working capital, incorporating the employment of tradable securities.
Verified Answer
KB
Keshawn BlairJul 17, 2024
Final Answer :
True
Explanation :
This statement is true as the total capital requirement of a firm includes both fixed assets and current assets. Additionally, there may be seasonal variations in the required temporary working capital.
Learning Objectives
- Understand the methods for overseeing and funding working capital, incorporating the employment of tradable securities.
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