Fixed capital requirements

Home/Fixed capital requirements
Fixed capital requirements 2018-04-05T12:11:45+00:00

Fixed capital requirements

In order to start business, funds are required to purchase fixed assets like land and building, plant and machinery, and furniture and fixtures. This is known as fixed capital requirements of the enterprise. The funds required in fixed assets remain invested in the business for a long period of time. Different business units need varying amount of fixed capital depending on various factors such as the nature of business, etc. A trading concern for example, may require small amount of fixed capital as compared to a manufacturing concern. Likewise, the need for fixed capital investment would be greater for a large enterprise, as compared to that of a small enterprise.

 

 

PiRuby is the perfect Tool to Discover Educational Content from Textbooks. Learning and Excellence Made Easy… Really Easy!