Share
Notifications

View all notifications

Explain the Following as Factor Affecting the Requirements of Fixed Capital: Choice of Technique - Business Studies

Login
Create free account


      Forgot password?
ConceptConcept of Fixed and Working Capital

Question

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

Choice of technique

Solution

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

  Is there an error in this question or solution?
Solution Explain the Following as Factor Affecting the Requirements of Fixed Capital: Choice of Technique Concept: Concept of Fixed and Working Capital.
S
View in app×