These are the options for the Question: Match the factors affecting fixed capital requirements Column-I with their explanations given.in Column-H :
The correct option is:
Based on the information provided, the correct match for the factors affecting fixed capital requirements in Column-I with their explanations in Column-II is:
(A) Nature of Business – i.e. a capital-intensive organization such as a cement manufacturing plant requires higher investments in fixed assets as compared to a trading organization which needs lower fixed assets as compared to a manufacturing organization.
(B) Technology Upgradation – i.e. a textile manufacturing company investing in technology upgradation may require higher fixed capital investments as compared to its previous levels.
(C) Diversification – i.e. a company diversifying its business and investing in fixed assets such as installing a cement manufacturing plant may require higher fixed capital investments.
(D) Mobile phones became obsolete faster and are replaced much sooner than furniture or many other assets. Hence, businesses that deal with such assets require more fixed capital investments.
Therefore, the correct match between Column-I and Column-II is (A) i, (B) iii, (C) iv, and (D) ii.
