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Explain the Following as Factors Affecting the Requirements of Fixed Capital: Technology Upgradation - Business Studies

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प्रश्न

Explain the following as factors affecting the requirements of fixed capital:

Technology upgradation

उत्तर

Technology upgradation: Due to changes in technology or it becoming obsolete over time, companies require a large amount of investment in fixed capital. For example, certain machinery becomes obsolete very soon compared to other assets such as furniture. Therefore, a larger fixed capital is required for upgradation.

Faster upgradation ⇒ Higher investment in fixed assets

Slower upgradation ⇒ Lower investment in fixed assets

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2013-2014 (March) Delhi Set 1

वीडियो ट्यूटोरियलVIEW ALL [2]

संबंधित प्रश्न

Match the pairs 

Group A

Group B

a. Fixed Capital

1. Owned Capital

b, Overdraft facility

2. Bearer document

c. Share certificate

3. Investment in fixed assets

d. Debentures

4. Current Account

e. Return on shares

5. Application Money

 

 

 

 

 

6. Dividend

7. Investment in current assets

8. Borrowed capital

9. Savings Account

10. Registered Document


Explain the following as factor affecting the requirements of fixed capital:

Scale of operations


Explain the following as factor affecting the requirements of fixed capital:

Choice of technique


Explain the following as factors affecting the requirements of working capital:

Production cycle


Explain the following as factors affecting the requirement of working capital:

The credit allowed and availed


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Name the method through which the company decided to raise additional capital. 


State, with reason, whether the following statement is True or False.

Requirement of working capital does not depend upon any factor.


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Ramnath is into the business of assembling and selling of televisions. Recently he has adopted a new policy of purchasing the components on three months credit and selling the complete product in cash. Will it affect the requirement of working capital? Give reason in support of your answer.


What is working capital? Discuss five important determinants of working capital requirement?


What is meant by capital gearing ratio?


Explain any four factors that affect the capital structure of a company.


Current assets of a business firm should be financed through


______ decision involves the decision regarding the distribution of profit or surplus of the company.


Net working capital may be defined as the:


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