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प्रश्न
Explain the following as factor affecting the requirements of fixed capital:
Diversification
उत्तर
Factors affecting the requirements of fixed capital:
Diversification: The given company has large-scale operations. This suggests that it would require larger fixed assets in the form of plants, land and building.
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संबंधित प्रश्न
Big retail stores requires large amount of ............................. capital.
- Fixed
- Working
- Loan
Rizul Bhattacharya after leaving his job wanted to start a Private Limited Company with his son. His son was keen that the company may start manufacturing of Mobile-phones with some unique features. Rizul Bhattacharya felt that the mobile phones are prone to quick obsolescence and a heavy fixed capital investment would be reuired regularly in this business. Therefore he convinced his son to start a furniture business.
Identify the factor affecting fixed capital requirements which made Rizul Bhattacharya to choose furniture business over mobile phones.
Answer the following question.
Explain briefly any four factors affecting the fixed capital requirements of an organisation.
Explain the following as factor affecting the requirements of fixed capital:
Growth prospects
Explain the following as factor affecting the requirements of fixed capital:
Level of collaboration
Explain the following as factor affecting the requirement of working capital:
Business cycle
Explain the following as factor affecting the requirements of working capital:
Operating efficiency
Explain the following as factor affecting the requirements of working capital:
Availability of raw material
Explain the following as a factor affecting the requirement of working capital:
Level of competition
What is Working Capital? Factors affecting requirement of Working capital?
Answer the following question.
You are the finance manager of a newly established company. The Directors have asked you to determine the amount of fixed capital requirements for the company. Explain any five factors that you will consider while determining the fixed capital requirement for the company.
Discuss in brief any four factors that affect the working capital requirement of a company.
Bright Bulbs Pvt. Ltd., is manufacturing good quality LED bulbs and catering to the local market. The current production of the company is 1,000 bulbs a day. Anita, the marketing manager of the company, surveyed the market and decided to supply the bulbs to five-star-hotels also. She anticipated the higher demand in future and decided to buy a sophisticated machine to further improve the quality and quantity of the bulbs produced. Which factor affected the fixed capital requirements of the company?
State any three factors that determine the requirement of fixed capital of a company.
Ratan Ltd. needs to raise funds from the financial market and, hence, considers issuing equity shares. State any four reasons to explain why this source of raising funds is considered by the company.
