Long Answer Type
Short Answer TypeHow does ‘Inflation’ affect the working capital requirements of a company? State.
Inflation is a situation of sustained increase in the general price level of goods and services. In such a situation, the working capital required to maintain a normal level of production and sale also increases. Inflation leads to increase in the cost of raw material, rise in wage rate, and rise in all other expenses and thus lead to a need for more working capital. The working capital requirement of a business thus, become higher with higher rate of inflation.
‘Financial market plays an important role in the allocation of scarce resources in an economy by performing various functions.’ Explain any three functions of financial market.
Crackers Ltd., a fire cracker manufacturing company launched some new products on eve of Diwali which attracted many buyers. To meet the increased demand, the company employed children from nearby villages. Although the product was in great demand, appropriate safety warnings were not mentioned on the packets that led to many accidents.
(i) Identify and explain the important product-related decision that was not taken into consideration by the company.
(ii) Also, identify any two values which were violated by the company.
State any three points of importance of consumer protection from the point of view of consumers.
Explain the following rights of consumers:
(i) Right to be informed;
(ii) Right to safety
Long Answer TypeDifferentiate between ‘capital-market’ and ‘money-market’ on the following basis:
(i) Participants;
(ii) Instruments;
(iii) Investment outlay;
(iv) Duration and
(v) Liquidity.
Explain ‘Price’ as an element of marketing– mix. Also, explain any four factors that affect the fixation of price of a product.
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