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Question
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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RELATED QUESTIONS
Match the pairs
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b, Overdraft facility |
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