{"id":59798,"date":"2024-04-16T01:43:34","date_gmt":"2024-04-16T01:43:34","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=59798"},"modified":"2024-04-16T01:43:34","modified_gmt":"2024-04-16T01:43:34","slug":"permanent-working-capital-is-generally-financed-through-3","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/permanent-working-capital-is-generally-financed-through-3\/","title":{"rendered":"Permanent working capital is generally financed through"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;Long term Capital Funds&#8221; option2=&#8221;Government Assistance&#8221; option3=&#8221;Internal Financing&#8221; option4=&#8221;Short term loans from Banks&#8221; correct=&#8221;option1&#8243;]<!--more--><\/p>\n<p>The correct answer is: <strong>A. Long term Capital Funds<\/strong><\/p>\n<p>Permanent working capital is the portion of working capital that is required to finance the firm&#8217;s normal operations on a continuous basis. It is financed through long-term capital funds, such as equity and debt.<\/p>\n<p>Short-term loans from banks are used to finance temporary increases in working capital, such as seasonal fluctuations in sales. Government assistance is not a common source of financing for working capital. Internal financing, such as retained earnings, can be used to finance working capital, but it is often not enough to meet the firm&#8217;s needs.<\/p>\n<p>Here is a more detailed explanation of each option:<\/p>\n<ul>\n<li><strong>Long term Capital Funds<\/strong> are funds that are borrowed or raised for a period of more than one year. They are typically used to finance long-term assets, such as plant and equipment. However, they can also be used to finance working capital, if the firm needs to borrow money to cover its short-term needs.<\/li>\n<li><strong>Short term loans from Banks<\/strong> are loans that are typically repaid within one year. They are often used to finance temporary increases in working capital, such as seasonal fluctuations in sales.<\/li>\n<li><strong>Government Assistance<\/strong> is financial aid that is provided by the government to businesses. It can be used to finance a variety of expenses, including working capital. However, government assistance is not always available, and it can be difficult to qualify for.<\/li>\n<li><strong>Internal Financing<\/strong> is financing that is generated from within the firm. It can come from retained earnings, which are profits that are not distributed to shareholders, or from the sale of assets. Internal financing is often the most cost-effective way to finance working capital, but it may not be enough to meet the firm&#8217;s needs.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;Long term Capital Funds&#8221; option2=&#8221;Government Assistance&#8221; option3=&#8221;Internal Financing&#8221; option4=&#8221;Short term loans from Banks&#8221; correct=&#8221;option1&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-59798","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Permanent working capital is generally financed through<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/permanent-working-capital-is-generally-financed-through-3\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Permanent working capital is generally financed through\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;Long term Capital Funds&#8221; option2=&#8221;Government Assistance&#8221; option3=&#8221;Internal Financing&#8221; option4=&#8221;Short term loans from Banks&#8221; correct=&#8221;option1&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/permanent-working-capital-is-generally-financed-through-3\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-16T01:43:34+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Permanent working capital is generally financed through","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/permanent-working-capital-is-generally-financed-through-3\/","og_locale":"en_US","og_type":"article","og_title":"Permanent working capital is generally financed through","og_description":"[amp_mcq option1=&#8221;Long term Capital Funds&#8221; option2=&#8221;Government Assistance&#8221; option3=&#8221;Internal Financing&#8221; option4=&#8221;Short term loans from Banks&#8221; correct=&#8221;option1&#8243;]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/permanent-working-capital-is-generally-financed-through-3\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-16T01:43:34+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/permanent-working-capital-is-generally-financed-through-3\/","url":"https:\/\/exam.pscnotes.com\/mcq\/permanent-working-capital-is-generally-financed-through-3\/","name":"Permanent working capital is generally financed through","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2024-04-16T01:43:34+00:00","dateModified":"2024-04-16T01:43:34+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/permanent-working-capital-is-generally-financed-through-3\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/permanent-working-capital-is-generally-financed-through-3\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/permanent-working-capital-is-generally-financed-through-3\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"mcq","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/"},{"@type":"ListItem","position":3,"name":"accounting","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/accounting\/"},{"@type":"ListItem","position":4,"name":"Permanent working capital is generally financed through"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/59798","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=59798"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/59798\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=59798"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=59798"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=59798"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}