Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Financial Management

Question:

When a large organisation operates at a higher level it needs bigger plants, more space etc the factor affecting the requirement of fixed capital referred to here is-

Options:

Choice of technique

Nature of business

Scale of operations

Growth prospects

Correct Answer:

Scale of operations

Explanation:

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.