Question

what is fixed capital ? write factors determining the amount of fixed capital​

Answer 1

Fixed capital is financed through long term sources of finance such as equity shares, preference shares, debentures, long term loans, etc.

...

Factors Affecting Requirement of Fixed Capital:

Nature of Business: ...

Scale of Operation: ...

Technique of Production: ...

Technology Up-gradation: ...

Growth Prospects: ...

Diversification:

Answer 2

Answer:

                            Fixed Capital

Definition : Those materials which can be used in production over many years is known as Fixed Capital ....

Examples : plant, machinery, vehicles and equipment, installations and physical infrastructures, the value of land improvements, and buildings.

                                       Factors

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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