Pinnacle Ltd. Deals in the scale of stationery and office furniture. They source the finished products from reputed brands who give them four to six months credit.
Seeing the demand for electronic items, they are also planning to market these items by opening outlets throughout india. For this, they have decided to join hands wiht a japanese electronic goods manufacturer.
Idenfiy and state any two factors that would affect the fixed capital requirement of pinnacle Ltd. as discussed above.

Explanation

Two factors that would affect the fixed capital requirement of Pinnacle Ltd. Are: (Explain).
(i) Diversification
(ii) Level of collaboration