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Question : Which of the following statement is incorrect for factors affecting requirement of fixed capital?
 

Option 1: The natural business determines the amount of fixed capital to a large extent.
 

Option 2: Firms which operate at small scale required large amount of fixed capital.
 

Option 3: Production techniques adopted by Business influence the requirement of fixed capital.
 

Option 4: None of the above


Team Careers360 19th Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: Firms which operate at small scale required large amount of fixed capital.
 


Solution : Firms which operator large scale required large amount of fixed capital as they need heavy and bigger machinery and equipments. However firms operating at small scale need  relatively lesser fixed capital.

Hence option B is correct.

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