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प्रश्न
Explain the following as factor affecting the requirements of fixed capital:
Level of collaboration
उत्तर
Factors affecting the requirements of fixed capital:
Level of collaboration: At times, business organisations undergo collaboration with each other and jointly establish certain facilities. In such cases, an individual organisation’s requirement for fixed capital reduces.
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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.
‘Best Bulbs Pvt. Ltd. was manufacturing good quality LED bulbs and catering to local market. The current production of the company is 800 bulbs a day. Sumit, the marketing manager of the company surveyed the market and decided to supply the bulbs to five-star-hotels also. He anticipated the higher demand in future and decided to buy a sophisticated machine to further improve the quality and quantity of the bulbs produced.
Identify the factor affecting fixed capital requirements of the company.
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A state with reason whether the working capital requirements of ‘Reliable Transport Services’ will be high or low.
How does 'Inflation' affect the working capital requirements of a company? State.
Explain the following as factor affecting the requirements of fixed capital:
Natural of business
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
Attempt the following
What are the factors affecting requirement of fixed capital ?
Discuss in brief any four factors that affect the working capital requirement of a company.
List any three factors affecting 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?
Match the factors affecting fixed capital requirements given in Column - I with their explanations given in Column - II:
Column - I | Column - II | ||
(A) | Nature of Business | (i) | A trading organisation needs lower investments in fixed assets as compared to a manufacturing organisation. |
(B) | Technology upgradation | (iii) | A textile manufacturing company is installing a cement manufacturing plant and thus its investments in fixed assets is increasing. |
(C) | Diversification | (iii) | A capital-intensive organisation requires higher investments in fixed assets as compared to labour- intensive organisation. |
(D) | Choice of Technique | (iv) | Mobile phones became obsolete faster and are replaced much sooner than furniture or many other assets. Hence, these type of businesses require more fixed capital. |
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.
The capital structure of XYZ Ltd. is highly geared. Explain any four factors that were considered by its Finance Manager while formulating such a capital structure for the company.