Question

Factors affecting fixed capital includes _____
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Answer 1

Answer:

Scale of Operation:

The companies which are operating at large scale require more fixed capital as they need more machineries and other assets whereas small scale enterprises need less amount of fixed capital.

Technology Up-gradation:

Industries in which technology up-gradation is fast need more amount of fixed capital as when new technology is invented old machines become obsolete and they need to buy new plants and machinery whereas companies where technological up-gradation is slow they require less fixed capital as they can manage with old machines.

these are some factors..

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Answer 2

Answer:

The requirement of fixed capital depends upon various factors which are explained below:

Nature of Business:

Scale of Operation:

Technique of Production:

Technology Up-gradation:

Growth Prospects:

Diversification:

Availability of Finance and Leasing Facility:

Level of Collaboration/Joint Ventures:

Explanation:

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