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Explain the Following as Factors Affecting the Requirements of Fixed Capital: Financing Alternatives - Business Studies

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

Financing alternatives

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Solution

Financing alternatives:
If leasing facilities are available without any lengthy procedures in the financial market, then the fixed capital requirements will be less.

Non-availability of financing alternatives ⇒  More fixed capital

Availability of financing alternatives ⇒ Less fixed capital

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