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Explain the Following as Factor Affecting the Requirements of Fixed Capital: Growth Prospects

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Question

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

Growth prospects

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Solution

Factors affecting the requirements of fixed capital:

Growth prospects: The company is growing and expanding, so it requires a higher amount of fixed capital.

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Factors Affecting Fixed and Working Capital Requirements
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2013-2014 (March) Delhi Set 2
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