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A company is diversifying and starting a steel manufacturing plant. State with reason the effect of diversification on the fixed capital requirements of the company

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A company is diversifying and starting a steel manufacturing plant. State with reason the effect of diversification on the fixed capital requirements of the company

Posted by Neeraj Kumar 7 years, 2 months ago

CBSE > Class 12 > Business Studies

1 answers

Naveen Sharma 7 years, 2 months ago

Ans. With diversification, the fixed capital requirements will increase as the investment in fixed capital will increase.

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