Mr. Rohit is into transport business. His buses are hired by schools for transportation of students. He is willing to expand and diversify his business to inter-state transportation purposes. Enumerate any six factors that will affect his fixed capital requirements.

Explanation

Factors affecting fixed capital requirements are: (any six)
(i)Scale of operations (ii)Financing alternatives
(iii)Growth prospects (iv)Nature of Business
(v)Diversification (vi)Level of Collaboration
(vii)Technology Upgradation (viii) Financing Alternatives