1. It is said that there should be a perfect balance between availability of funds for fixed cost and working capital. One without the other may jeopardize the growth prospects of the business....

1. It is said that there should be a perfect balance between availability of funds for fixed cost and working capital. One without the other may jeopardize the growth prospects of the business. Explain by critically examining this statement with the help of examples.

2. Why is it necessary for an entrepreneur to raise funds from long-term sources for meeting capital expenditure requirements on land, building and plant and machinery while raising short-term funds for working capital requirements? Explain by giving concrete examples of the rationale for this.