CBSE 2023 · Region 5 · Set 1 · Q13

Match the factors affecting fixed capital requirements given in the Column-I with their explanations given in Column-II: Column – I Column - II A Nature of i. A trading organisation needs lower Business investments in fixed assets as compared to a manufacturing organisation. B Technology ii. A textile manufacturing company is upgradation installing a cement manufacturing

plant and thus its investments in fixed assets is increasing. C Diversification iii. A capital-intensive organisation requires higher investments in fixed assets as compared to labour- intensive organisation. D Choice of iv. Mobile phones became obsolete Technique faster and are replaced much sooner than furniture or many other assets. Hence these type of businesses require more fixed capital. a b c d