A trading organisation comparatively needs _____ investment in fixed assets as compared to a manufacturing organisation
A trading organisation comparatively needs _____ investment in fixed assets as compared to a manufacturing organisation
Solution
✅ Correct Option: 1
Trading organisations primarily buy and sell goods and do not require heavy machinery, plant, or large factory premises. Manufacturing organisations, on the other hand, need substantial fixed assets. Therefore, trading firms need lesser investment in fixed assets compared to manufacturing firms.
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