Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Financial Management

Question:

A trading organisation comparatively needs.............investment in fixed assets as compared to a manufacturing organisation.

Options:

Lesser

Larger

Moderate

Negligible

Correct Answer:

Lesser

Explanation:

The type of business has a bearing upon the fixed capital requirements. For example, a trading concern needs lower investment in fixed assets compared with a manufacturing organisation; since it does not require to purchase plant and machinery, etc.