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q what is lending systemunder the note lending system the borrower takes a loan usually of 90 days duration against a promissory note the loan may be
purchasing and discounting of bills is the most important from in which a bank lends without any collateral security present day commerce is build
q can you explain about overdraftsoverdraft means an agreement with a bank by which a current account-holder is allowed to withdraw more than the
q what is cash credita cash credit is an arrangement by which a bank allows his customer to borrow money up to a certain limit against some tangible
q explain about loans - forms of bank financewhen a bank makes an advance in lump-sum against some security it is called a loan in case of a loan a
q forms of bank financea firm can draw funds from a bank within the maximum credit limit sanctioned it can draw funds in the following forms1
q what is deferred incomesdeferred incomes are incomes received in advance before supplying goods or services they represent funds received by a firm
q what do you mean by accrued expensesaccrued expenses are the expenses which have been incurred but not yet due and hence not yet paid also these
q what is installment creditthis is another method by which the assets are purchased and the possession of goods is taken immediately but the payment
q advantages of trade crediti easy availability unlike other sources of finance trade credit is relatively easy to obtainexcept in the case of
q working capital based on operating cyclethe concept of operating cycle helps determining the time scale over which the current assets are
q working capital as a percentage of total assetsthis approach of estimation of working capital requirement is based on the fact that the total
q working capital as a percentage of net salesthis approach to estimate the working capital requirement is based on the fact that the working capital
q estimation of working capitala firm must estimate in advance as to how much net working capital will be required for the smooth operations of the
q management of working capitalworking capital in general practice refers to the excess of current assets over current liabilities management of
q aggressive approach of financial managementa -firm may be aggressive in financing its assets an aggressive policy is said to be followed by the
q conservative approach of financial managementan exact matching plan may not be followed in practice a firm may adopt a conservative approach in
q short terms working capital1 indigenous bankers private money leased and other country banking used to be the only source of finance prior to the
loans from the financial institutions financial institutions such as the commercial bank life insurance corporation industries financial development
plugging back of the future of profit means the reinvestment by the concerns of its surplus in the business it is an internal financial of the
q what do you mean by public depositspublic deposits are the fixed deposited by the business enterprises directly from the company this source of the
q what is debenturesdebentures a debenture is an instrument issued by the company acknowledge its debts to its holders it is also an important
q what do you mean by sharesshares issue of the share is the most important source of the long terms capital a company can issue various type of the
q rate of the growth of the businessthe working capital requirement of the a concern increase with the growth and expansion of the business
q what do you understand by business cyclebusiness cycle business cycle refers to the alternate expansion and contraction in the general business