Advertisements
Advertisements
Question
How does Diversification affect fixed capital?
Options
Leasing increases need for outright purchase
Adding new lines of business increases fixed capital
Adding new lines of business lowers fixed capital
Shared facilities increase each firm's fixed asset investment
MCQ
Advertisements
Solution
Diversification means adding new lines of business. Doing so increases fixed capital requirement.
shaalaa.com
Is there an error in this question or solution?
