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प्रश्न
‘Best Bulbs Pvt. Ltd. was manufacturing good quality LED bulbs and catering to local market. The current production of the company is 800 bulbs a day. Sumit, the marketing manager of the company surveyed the market and decided to supply the bulbs to five-star-hotels also. He anticipated the higher demand in future and decided to buy a sophisticated machine to further improve the quality and quantity of the bulbs produced.
Identify the factor affecting fixed capital requirements of the company.
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उत्तर
In the given scenario, the decision of marketing manager is derived by the prospects of growth by expanding the supply of bulbs to five star hotels. To expand the production, the organisation would have to acquire more fixed machinery and inputs initially. This will require the organisation to generate higher amount of fixed investment for the business. An organisation with high prospects of growth requires a big amount in fixed investment and vice - versa.
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संबंधित प्रश्न
Rizul Bhattacharya after leaving his job wanted to start a Private Limited Company with his son. His son was keen that the company may start manufacturing of Mobile-phones with some unique features. Rizul Bhattacharya felt that the mobile phones are prone to quick obsolescence and a heavy fixed capital investment would be reuired regularly in this business. Therefore he convinced his son to start a furniture business.
Identify the factor affecting fixed capital requirements which made Rizul Bhattacharya to choose furniture business over mobile phones.
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Natural of business
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Diversification
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Business cycle
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Operating efficiency
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Availability of raw material
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Level of competition
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