and automated machineries.
An entrepreneur obtains funds for the purchase of fixed asse
Funding can come from issue of shares, debentures, bonds or
loans.
Factors affecting tired capital requirement
1. Nature of business : Manufacturing industries and pub
huge amount of funds to acquire fixed assets. While
need huge investments in fixed assets.
2. Size of business: Where a business firm is set up to carr
its fixed capital requirements are likely to be high. I
production processes are based on automatic machines
3. Scope of business. There are business firms whic
production or distribution on a large scale. Such bus
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democracy are working of institution
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