BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Working Capital Concept
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Fixed Capital
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Investment Decision
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Financing Decision
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Detailed explanation-1: -Fixed capital, or fixed assets or capital assets, refers to a company’s long-term assets, such as land, buildings, or equipment that is used in producing goods or services.
Detailed explanation-2: -Fixed capital is the value of capital assets available for production purposes at a given point in time. All capital goods are included which are accounted for in gross fixed capital formation. This is measured by the value of acquisitions less disposals of new or existing fixed assets.
Detailed explanation-3: -Ans : There are many factors affecting fixed capital. Some include diversification, joint ventures, growth prospects, and production techniques. Ans : Some of the factors that affect working capital include the nature of the business, operating efficiency, availability of raw materials, and competition level.
Detailed explanation-4: -Fixed capital includes the assets that are needed to start up and conduct business.