SHIRISH MAHESHWARI

R900215110
ONLINE ASSIGNMENT
Q-1. Explain FIXED & WORKING CAPITAL in your words with example.
Q-2. What do you understand by sources of Finance? Describes the various
sources of finance with example.
Q-3. Describes the ASSUMPTIONS and IMPORTANCE of BREAK EVEN ANALYSIS.
Why Companies need to know the break-even point ad analysis (Discuss only
one point in your view).

Answer-1
Long haul related venture can be named as fixed capital. It carries on for a more extended term and is the
fills in as the fundamental establishment of any association. A settled capital might be patents or
machinery.

On the other hand a Working capital manages venture of general and regular interims. It is a use that must
be made on a daily basis. Working capital may be any past account holders or cash in hand.

ANSWER -2
Wellsprings of the fund are the most investigated zone particularly for the
entrepreneurs going to start a new business. The wrong source of finance has a
direct impact on the feasibility of project under concern. Various sources of
finance are differentiated on the basis of the time period for which the money is
required, ownership and control over the business and according to the source of
generation into internal sources and external sources. Example of internal
sources are retained profits and sale of assets.

Answer- 3
Break even analysis has a tendency to recognise and shape a relationship
between the cost and the offer of the association. It can be named as the
measure of the margin of safety depended on the incomes gathered. Break-even
analysis is of extraordinary significance since it helps in deciding practical
utilisation of the expenses. Assumptions identified with it might disregard semi-
variable expenses or treat the volume of sales and production as equivalent.
Organisations need to think about Break even analysis as it gives benchmarks to
long haul based planning.