A trading organisation comparatively needs.............investment in fixed assets as compared to a manufacturing organisation.
Answer & explanation
Correct answer: option 1
The correct answer is option 1- Lesser.
A trading organisation comparatively needs lesser investment in fixed assets as compared to a manufacturing organisation.
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.