मराठी

Explain the Following as Factors Affecting the Requirements of Fixed Capital: Technology Upgradation

Advertisements
Advertisements

प्रश्न

Explain the following as factors affecting the requirements of fixed capital:

Technology upgradation

Advertisements

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

shaalaa.com
  या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
2013-2014 (March) Delhi Set 1

व्हिडिओ ट्यूटोरियलVIEW ALL [2]

संबंधित प्रश्‍न

Match the pairs 

Group A

Group B

a. Fixed Capital

1. Owned Capital

b, Overdraft facility

2. Bearer document

c. Share certificate

3. Investment in fixed assets

d. Debentures

4. Current Account

e. Return on shares

5. Application Money

 

 

 

 

 

6. Dividend

7. Investment in current assets

8. Borrowed capital

9. Savings Account

10. Registered Document


Answer the following question:
The Return on Investment (ROI) of a company ranges between 10 - 12% for the past three years. To finance its future fixed capital needs, it has the following options for borrowing debt:
Option ‘A’: Rate of interest 9%
Option ‘B’: Rate of interest 13%

Which source of debt, ‘Option A’ or ‘Option B’, is better? Give reasons in support of your answer. Also, state the concept being used in taking the decision.


Explain the following as factors affecting the requirements of fixed capital:

Financing alternatives


How does working capital affect both the liquidity as well as profitability of a business?


Select the proper option from the options given below and rewrite the sentence:
The _________ capital remains in business almost permanently.

Write a word or a term or a phrase which can substitute the following statement :

The difference between current assets and current liabilities.


Fixed Capital Working Capital 


What is meant by capital gearing ratio?


Why is working capital also known as circulating capital? 


Which of the following factors highlight the importance of capital budgeting decisions


______ of a firm refers to those assets which can be converted into cash or cash equivalents in a short period of time.


Working capital is calculated as?


______ refers to the decisions regarding where to invest so as to earn the  highest possible returns on investment.


Dhaval Acharya, after acquiring a bachelor’s degree in Hotel Management joined his father’s chain of vegetarian restaurants in Ahmednagar. Being young and enterprising, he suggested his father to add a new section of vegetarian bakery items which required an investment of ₹ 5 crores. His father Mr. Aariketh Acharya suggested him to take the decision with caution and understood everything comprehensively as bad decision may damage the financial fortune of business.

Identify the decision suggested by Mr. Aariketh Acharya. State by giving any three reasons as to why he must have advised his son to take decision with caution.


Which group consists of fixed assets?


What are decisions about investment in long-term assets called?


Which sources should never be used to finance fixed assets?


How does fast obsolescence under Technology Upgradation affect fixed capital requirement?


How does Diversification affect fixed capital?


Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×