BUISENESS MANAGEMENT
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Business cycle
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Scale of operations
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Choice of technique
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Technology upgradation
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Level of collaboration
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Detailed explanation-1: -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-2: -Diversification is not a factor determining the capital structure.
Detailed explanation-3: -Fixed capital involves allocation of firm’s capital to long term assets or projects. Managing fixed capital is related to investment decision and it is also called Capital Budgeting. The capital budgeting decision affects the growth and profitability of the company.
Detailed explanation-4: -Solution(By Examveda Team) Composition of the current assets does not affect the capital structure of a company.