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Which factors are to be considered while determining Fixed Capital, out of the following ?

(A) Technology upgradation

(B) Diversification

(C) Credit allowed by suppliers

(D) Operating efficiency

(E) Seasonal factors

Choose the correct answer from the options given below :

Solution

Correct Option: 3

Factors affecting fixed capital requirements include nature of business, scale of operations, choice of technique, technology upgradation, growth prospects, diversification, financing alternatives, and level of collaboration. Credit allowed by suppliers, operating efficiency, and seasonal factors affect working capital, not fixed capital. So only (A) Technology upgradation and (B) Diversification are relevant.

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