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Question
A growing and expanding firm requires more ______ than a stagnant firm.
Fill in the Blanks
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Solution
A growing and expanding firm requires more working capital than a stagnant firm.
Explanation:
A growing and expanding firm needs more fixed capital to invest in long-term assets like machinery, equipment, buildings, etc., to support its growth.
A stagnant firm has limited growth, so its need for fixed capital is lower.
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