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Capital Requirements Worksheet
Class 12 Business Studies
📝 Instructions: For each scenario, decide whether the factor would lead to MORE or LESS capital requirement. Select your answer and click Submit to see your results!
⚠️ All 20 questions are compulsory. You must answer every question before submitting.
Question 1: Factors Affecting Fixed Capital Requirement
1. A manufacturing company decides to use highly automated machinery instead of manual labor.
2. A business chooses to lease its factory building rather than purchasing it.
3. A company operates in a large-scale industry requiring extensive infrastructure.
4. An electronics manufacturing firm decides to diversify in cosmetics industry .
5. A startup adopts a labor-intensive production technique instead of capital-intensive methods.
6. A business plans to grow and expand its production capacity by 200%.
7. A electronic goods manufacture that has entered into collaboration with a giant firm in South East Asia.
8. A firm operates in a trading industry rather than manufacturing.
9. A business uses computers for doing all its operations and they need upgradation and replacement frequently .
10. A company decides to collaborate with their supplier for managing their transport requiremnt by buying trucks together.
Question 2: Factors Affecting Working Capital Requirement
1. A retail business extends credit period to customers for longer periods .
2. A company negotiates longer credit terms with suppliers (from 30 to 60 days).
3. A business experiences rapid growth and expansion in sales volume.
4. A Ltd is doing a business of providing warehousing facility to other business.
5. A company's lead time for raw material is less .
6. A manufacturing firm has a long production cycle of 6 months.
7. A business firm is going through boom period.
8. A company faces increased competition and must maintain higher stock levels.
9. Raw material prices increase significantly in the market.
10. A business improves its inventory turnover ratio from 4 to 8 times per year.
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