Which of the following statement is FALSE?

Lower Fixed capital is required for Technological upgradation.

The correct answer is option (1)- Lower Fixed capital is required for Technological upgradation.

Lower Fixed capital is required for Technological upgradation- This is false as more fixed capital needed for technological upgradation.  In certain industries, assets become obsolete sooner. Consequently, their replacements become due faster. Higher investment in fixed assets may, therefore, be required in such cases. For example, computers become obsolete faster and are replaced much sooner than say, furniture. Thus, such organisations which use assets which are prone to obsolescence require higher fixed capital to purchase such assets

With Diversification fixed capital requirement increases. This is true. A firm may choose to diversify its operations for various reasons, With diversification, fixed capital requirements increase e.g., a textile company is diversifying and starting a cement manufacturing plant. Obviously, its investment in fixed capital will increase.

A capital intensive organisation requires more fixed capital- This is true. Some organisations are capital intensive whereas others are labour intensive. A capital-intensive organisation requires higher investment in plant and machinery as it relies less on manual labour. The requirement of fixed capital for such organisations would be higher. Labour intensive organisations on the other hand require less investment in fixed assets. Hence, their fixed capital requirement is lower.

A large Scale of operation in manufacturing requires more fixed capital- This is true. A larger organisation operating at a higher scale needs bigger plant, more space etc. and therefore, requires higher investment in fixed assets when compared with the small organisation.