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Financial Management — Business Studies STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceBusiness StudiesFinancial Management1 Mark
Question
Identify why the requirements of Fixed Capital for a trading concern are different from that of a manufacturing organisation.
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Answer

Trading concern does not require to purchase plant and machinery etc. whereas manufacturing organisation does. Therefore, trading concern in comparison to a manufacturing organisation requires lower investment in fixed assets.

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