Page 2 - Home Assignment 5
P. 2
Q.4. Under which of the following circumstances the fixed capital requirement of
a business is not likely to be high?
(a) When the raw material is not easily available
(b) Capital intensive techniques of production are used
(c) The growth prospects of a company a high
(d) When the financial alternatives are easily available
Q.5 which investment decisions are difficult to be changed?
(a) Fixed capital decision (b) Working capital decision
(c) Both (a) and (b) (d) None of these
1 mark questions
Q.1 what do you mean by Management of Fixed capital?
Q.2 Give some examples of capital budgeting decisions.
Q.3 Best Bulbs Pvt. Ltd. was manufacturing good quality LED bulbs and catering
to local market. The current production of the company is 800 bulbs a day. Sumit,
marketing manager of the company surveyed the market and decided to supply
the bulbs to five-star-hotels also. He anticipated the higher demand in future
and decided to buy a sophisticated machine to further improve the quality and
quantity of the bulbs produced.
Identify the factor affecting fixed capital requirements of the company.
Q.4 Radhika and Vani who are young fashion designers left their job’ with a
famous fashion designer chain to set-up a company ‘Fashionate Pvt. Ltd. They
decided to run a boutique during the day and coaching classes for entrance
examination of National Institute of Fashion Designing in the evening. For the
coaching centre they hired the first floor of a nearby building. Their major
