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Explain the Following as Factor Affecting the Requirements of Fixed Capital: Natural of Business - CBSE (Commerce) Class 12 - Business Studies

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Question

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

Natural of business

Solution

Nature of business: The given company deals in manufacturing (having a large operating cycle), so it requires large fixed capital. Firms involved in a large operating cycle require higher fixed capital.

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Solution Explain the Following as Factor Affecting the Requirements of Fixed Capital: Natural of Business Concept: Factors Affecting Fixed and Working Capital Requirements.
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