Share
Notifications

View all notifications

Explain the Following as Factors Affecting the Requirements of Fixed Capital: Technology Upgradation - Business Studies

Login
Create free account


      Forgot password?
ConceptConcept of Fixed and Working Capital

Question

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

Technology upgradation

Solution

Technology upgradation: Due to changes in technology or it becoming obsolete over time, companies require a large amount of investment in fixed capital. For example, certain machinery becomes obsolete very soon compared to other assets such as furniture. Therefore, a larger fixed capital is required for upgradation.

Faster upgradation ⇒ Higher investment in fixed assets

Slower upgradation ⇒ Lower investment in fixed assets

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