Suggest in which of the following cases, the fixed capital requirement of company will be more? (A) A firm buying from small retailers and selling it into the market Choose the correct answer from the options given below: |
(C), and (E) Only (A), and (D) Only (B) and (E) Only (C) and (A) Only |
(C), and (E) Only |
The correct answer is Option (1) → (C), and (E) Only. (C) A textile company diversifying into cement manufacturing will require more fixed capital because cement manufacturing involves heavy machinery, large-scale production facilities, and significant infrastructure investments. (E) A company manufacturing both two-wheelers and four-wheelers will also require more fixed capital due to the need for large-scale production facilities, equipment, and infrastructure for the manufacture of both types of vehicles. Other options involve businesses that may require less fixed capital. |