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प्रश्न
Explain the following as factor affecting the requirements of fixed capital:
Choice of technique
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उत्तर
Choice of technique: A company may use labour-intensive or capital-intensive techniques. A company using capital-intensive techniques will require larger fixed assets, whereas a company using labour-intensive technique will require less fixed assets.
Capital-intensive organisation ⇒ Higher investment in fixed assets
Labour-intensive organisation ⇒ Lower investment in fixed assets
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संबंधित प्रश्न
Explain briefly any four factors that affect the working capital requirement of a company.
Explain the following as factors affecting the requirements of fixed capital:
Financing alternatives
Explain the following as factors affecting the requirements of working capital:
Scale of operations
Explain the following as factors affecting the requirements of working capital:
Seasonal factors
Explain the following as factors affecting the requirement of working capital:
The credit allowed and availed
Fixed Capital Working Capital
Why is working capital also known as circulating capital?
Current assets are those assets which get converted into cash
A fixed asset should be financed through
What are the important determinants of working capital requirement?
Assertion (A): A commercial bill is a bill of exchange used to finance the working capital requirements of business firms.
Reason (R): Commercial bill is a short-term, negotiable, self-liquidating instrument which is used to finance the credit sales of firms.
How long do fixed assets last?
Which group consists of fixed assets?
What is fixed capital?
Through which sources must fixed capital be financed?
How does Choice of Technique affect fixed capital requirement?
How does Diversification affect fixed capital?
How does leasing affect fixed capital requirement?
How does the Level of Collaboration affect each firm's fixed asset investment?
