Match the LIST-I with LIST-II
LIST-I (Factor affecting Fixed capital requirements) LIST-II (Explanation) A. Choice of Technique I. Organizations that use assets which are prone to obsolescence require higher fixed capital. B. Level of Collaboration II. A developed financial market may provide leasing facilities as an alternative to outright purchase. C. Financing Alternatives III. Certain business organisations share each other's facilities. D. Technology Upgradation IV. A capital-intensive organisation requires higher investment in plant.
Choose the correct answer from the options given below:
Match the LIST-I with LIST-II
| LIST-I (Factor affecting Fixed capital requirements) | LIST-II (Explanation) |
|---|---|
| A. Choice of Technique | I. Organizations that use assets which are prone to obsolescence require higher fixed capital. |
| B. Level of Collaboration | II. A developed financial market may provide leasing facilities as an alternative to outright purchase. |
| C. Financing Alternatives | III. Certain business organisations share each other's facilities. |
| D. Technology Upgradation | IV. A capital-intensive organisation requires higher investment in plant. |
Choose the correct answer from the options given below:
Solution
✅ Correct Option: 1
Choice of technique determines whether the firm is capital intensive, requiring higher plant investment (IV). Level of collaboration allows firms to share facilities (III). Financing alternatives such as leasing reduce the need for outright purchase (II). Technology upgradation concerns assets prone to obsolescence (I). Hence A-IV, B-III, C-II, D-I.
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