CBSE BoardEnglish MediumSTD 11 CommerceEntrepreneurshipResource Mobilization3 Marks
Question
What is short term capital?
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Answer
The amount of capital which is invested in the enterprise for a period less than one year:
Such capital is needed for fulfilling the day to day requirements of the enterprise. It is needed for procuring raw material, finished goods, spare parts, advertising, marketing etc.
Such capital is obtained from financial institutions against the securities. It is needed more by the enterprises having longer length of operating cycle.
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