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Rizul Bhattacharya After Leaving His Job Wanted to Start a Private Limited Company with His Son. His Son Was Keen that the Company May Start Manufacturing of Mobile-phones with Some Unique Features. - Business Studies

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Rizul Bhattacharya after leaving his job wanted to start a Private Limited Company with his son. His son was keen that the company may start manufacturing of Mobile-phones with some unique features. Rizul Bhattacharya felt that the mobile phones are prone to quick obsolescence and a heavy fixed capital investment would be reuired regularly in this business. Therefore he convinced his son to start a furniture business.

Identify the factor affecting fixed capital requirements which made Rizul Bhattacharya to choose furniture business over mobile phones.

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Solution

‘Technology upgradation’ is the factor affecting fixed capital requirements.

Concept: Factors Affecting Fixed and Working Capital Requirements
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