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
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.
Question : The firm which operate at large scale required more working capital. Which factor affecting working capital requirement is highlighted in the statement?
Option 1: Nature of business
Option 2: Scale of operation
Option 3: Business cycle
Option 4: Production cycle
Question : Which of the following statements is incorrect?
Option 1: Fixed capital affects the long term growth of the business.
Option 2: Fixed capital involves large amount of funds.
Option 3: There is no risk involved in fixed capital.
Question : The limit has changed from Rs.50 lakhs in 1952 present limit of Rs.1 Cr. This industry is
Option 1: Small scale industry
Option 2: Medium scale industry
Option 3: Large scale industry
Option 4: None of the above.
Question : The economic environment of business refers to:
Option 1: The technological factors affecting business operations
Option 2: The social and cultural factors influencing business decisions
Option 3: The overall economic conditions, such as GDP growth and inflation rates
Option 4: The legal and regulatory framework within which businesses operate
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