Download free printable assignments worksheets of Economics from CBSE NCERT KVS schools, free pdf of CBSE Class 12 Economics Government Budget and the Economy Assignment chapter wise important exam questions and answers CBSE Class 12 Economics Government Budget and the Economy Assignment. The reason for this less requirement will be a financial alternative in the form of lease that he has generated saving his funds which otherwise would have been used in purchasing the land. The working capital requirement of this business will be low. Those assets which remain in business for more than a year constitute the Fixed capital of a business firm. Non-Development Expenditure refers to the expenditure which is incurred on the essential goods and services of the Government. Her father has restaurant business. Borrowings are capital receipts as they lead to an increase in the liability of the Government. The part of profit which is distributed by the company to its shareholders is known as dividend. The demand of its trucks is high as the economic growth is about 7% to 8%. The other term used for long term investment is ‘Capital Budgeting Decision’. The sources of finance are: III. If it takes loan its fixed financial costs will increase leading to an overall increase in payments. Question 15. What do you think is going to be the working capital requirement of this company? Contents1 INTRODUCTION:2 OBJECTIVES OF BUSINESS PLAN.3 NEEDS OF A BUSINESS PLAN4 IMPORTANCE5 BUSINESS OBJECTIVE6 BUSINESS …, Your email address will not be published. Fees: Fees refer to charges imposed by the Government to cover the cost of recurring services provided by it court fees registration fees import fees etc. MM Ltd. is manufacturing small cars at its manufacturing unit in Pune. I would also like to thank all the individuals who served me in this project. There are two brothers: Shobhit and Mohit. NCERT Solutions class 12 Economics The Government Budget and Economy Class 12 Economics book solutions are available in PDF format for free download. Non-planned expenditure is spent on the liability of the Government and arses only when the plans provide such expenditure. The fixed capital requirement generally is low in trading business. In the modern world, every Government aims at maximizing the welfare of its country. Fines and Penalties: They refer to that payment, which is imposed on lawbreakers, fine for jumping light, etc. III. It has been consistently earning good profits for many years. Ramesh is running a real estate construction company. Yes, I agree with him. Financing function or Financing decision. The company knows there are going to be sizeable floatation costs involved in it. It issued IPO in the market last year. A firm has decided not to issue equity this year. Hence more debt in the capital structure means low cost of overall capital. Revenue Deficit is concerned with the revenue expenditure and revenue receipts of the Government. He has come from Australia to set up a business of his father here in India. Within two years the company has reached among the top 3 performers of the industry. 2 in case study (l) How Return on Investment would matter? The two other two parties besides government who can file a case under Consumer Protection Act 1986 are any consumer and any registered consumers’ association. Factors affecting the requirement of Working Capital: Question 16. Answer: The importance of financial planning highlighted in the above case are: Managerial control. Secondly the credit allowed by the company would increase its working capital requirement. Borrowing: Fiscal Deficit can be met by borrowings from the internal sources or the external sources. The reason for this low requirement is that the production cycle for Pizza base is short and as the production is made on estimated order no inventory is required which will further prevent inventory costs. 12 Downloads5 Pages / 1,111 Words Add in library Click this icon and make it bookmark in your library to refer it later. Keeping the concern of raising funds alive a company decides to go for debenture as the final choice. Identify the concept of financial management which is highlighted in thaabove case. ‘Sarah Ltd.’ is a company manufacturing cotton yarn. The fixed capital requirement would be high. Its ‘wide range of express package and parcel service’ help business firms to make sure that the goods are made le to the customers at the right place and at the right time. “So Zero primary deficit indicates the interest commitments of the Government.”, 2c. Also identify the factors affecting the decisions: Question 33. Choice of technique. They thought of buying a photocopier knowing fully that their scale of operations was not sufficient to make full use of the photocopier. The company knows that the project will be a successful venture in the years to come. For this purpose, the budgetary policy aims to mobilize sufficient resources for investment in the public sector. What do you think is going to be the impact of this collaboration on the fixed capital investment of ‘Hamara Bank’? Atul is thinking of opening a scissors manufacturing plant. Buy Shivdas Books Online from Online Book Store shivdas.in. Company ‘A’ has the debt-equity ratio of 3 :1. Essay questions on cry the beloved country. ‘Mitra, my neighbour’ is a real estate company. Answer: Industries where assets quickly become obsolete require higher fixed capital in order to replace such assets. Sources of Revenue: There are two types of Revenue Receipts of the Government. The Company A is going to have higher chances of financial risk as the debt component is higher. Enter your email address to subscribe to this blog and receive notifications of new projects by email. A company has decided to plough back the money in the form of retained earnings. He has to involve a considerable portion of his funds and block them in long term projects. So, the company has decided not to change the dividend per share. For example, Direct tax and Indirect Tax. The sources which finance Fixed capital are known as Long-term sources of funds. According to this parameter he finds both projects at par. Financial decisions are of three types – Investment decision (short-term investment decision/working capital). It is planning to set up a new car manufacturing unit at Indore. Answer: The company’s management already has only 60% shares in the company. A company is thinking of taking debt to meet its finance requirements. 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