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Question
The following is true about Fixed capital and Working capital requirements of a business firm:
Options
A business firms operating on large scale will require more fixed capital and less working capital.
A business firms operating on large scale will require less fixed capital and more working capital.
A business firms operating on large scale will require more fixed capital as well as more working capital.
A business firms operating on large scale will require less fixed capital as well as less working capital.
MCQ
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Solution
A business firms operating on large scale will require more fixed capital as well as more working capital.
Explanation:
- A large-scale business needs more fixed capital to invest in machinery, buildings, and technology.
- It also needs more working capital to manage day-to-day operations like purchasing raw materials, paying wages, and maintaining stock.
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