Page 3 - Home Assignment 5
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expenses were money spent on photocopying of notes for their students. They
thought of buying a photocopier knowing fully that their scale of operations was
not sufficient to make full use of the photocopier.
In the basement of the building of 'Fashion ate Pvt. Ltd.' Praveen and Ramesh
were carrying on a printing and stationery business in the name, of 'New Prints
Pvt. Ltd.' Radhika approached Praveen with the proposal to buy a photocopier
jointly which could be used by both of them without making separate investment,
Praveen agreed to this
Identify the factor affecting fixed capital requirements of 'Fashionate Pvt. Ltd.'
3-4 mark question
Q.1 why management of fixed capital is important? Give any three reasons.
Q.2 How the Diversification and Financing Alternatives affect the fixed capital
requirements?
5-6 mark questions
Q.1 Explain any five factors affecting the Requirement of Fixed Capital.
Q.2. Elizabeth Fragrances Ltd. is the third largest manufacturer of perfumes,
hair care and skin care product. The company now wants to diversify into high
fashion garments for women. It is also , planning to open exclusive retail
outlets in all the, metropolitan cities of the country in the coming five years.
On the basis of the given information about Elizabeth Fragrances Ltd., answer
the following questions:
(a) Identify and explain any two factors affecting the fixed capital requirements of
the company. Quote lines from the paragraph to support your answer.
