Question

Which of the following statements is not true with regard to use of fixed capital ?

a. It affects the long term growth of the business 1

b. Large amount of funds are involved

c. The business risk involved is low

d. The investment decisions are irreversible​

Answer 1

Explanation:

a is the answer yar

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Answer 2

Which of the following statements is not true with regard to use of fixed capital?

c. The business risk involved is low is the correct option

• Fixed assets are the assets that are acquired for a long period of use and are not converted into cash in a period of fewer than twelve months.

THE HIGH BUSINESS RISK INVOLVED IN FIXED ASSETS ARE:-

• While using fixed assets the problem of over-maintaining and under-maintaining can arise. The crucial issue in over-maintaining commonly involves issues that make the asset managing system inadequate. There is mostly considerable cost linked with the undertaking of maintenance charges.
• Many organizations are unable to understand the capabilities or drawbacks of the designs of the fixed asset.
• Many organisations are unable to know how to operate the fixed assets in their ranges to use them in an optimal manner.
• The risk in fixed capital is that in its most primary form the function of outcomes and the probability of such events taking place changes with time.
• The cost of installation is increased by the acquisition price of the fixed assets including the tax payment, enrollment payment, delivery fees, labour fees, fixing expenses, etc.

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