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प्रश्न
Explain the following as factors affecting the requirements of fixed capital:
Technology upgradation
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उत्तर
Technology upgradation: Due to changes in technology or it becoming obsolete over time, companies require a large amount of investment in fixed capital. For example, certain machinery becomes obsolete very soon compared to other assets such as furniture. Therefore, a larger fixed capital is required for upgradation.
Faster upgradation ⇒ Higher investment in fixed assets
Slower upgradation ⇒ Lower investment in fixed assets
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संबंधित प्रश्न
Explain the following as factors affecting the requirements of working capital:
Seasonal factors
Explain the following as factors affecting the requirements of working capital:
Production cycle
Fixed Capital Working Capital
Why is working capital also known as circulating capital?
Current assets are those assets which get converted into cash
What are the important determinants of working capital requirement?
Working capital is calculated as?
Net working capital may be defined as the:
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.
When XYZ company acquired a toy manufacturing company, it paid a large amount for the goodwill. Which source of business funds of XYZ company was impacted?
Which group consists of fixed assets?
Through which sources must fixed capital be financed?
Which list contains long-term sources for financing fixed capital?
Which set of activities is covered by expenditure on fixed capital?
Why do the large funds involved in capital budgeting require detailed analysis?
What is the effect of a larger Scale of Operations on fixed capital?
How does Choice of Technique affect fixed capital requirement?
