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Ms Pooja has a manufacturing business of winter clothes in Raipur, Chattisgarh with an annual demand of 50,000 units. Suggest the factors that she needs to consider while deciding on the requirement of fixed capital for the business.

(A) Scale of operations

(B) Choice of Technique

(C) Growth Prospects

(D) Business Cycle

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 2

Factors affecting fixed capital requirements include scale of operations, choice of technique, growth prospects, nature of business, technology upgradation and diversification. Business cycle is a factor affecting working capital requirements, not fixed capital. Hence only (A), (B) and (C) apply.

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