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Financial Management — Business Studies STD 12 Commerce — Question

CBSE BoardEnglish MediumSTD 12 CommerceBusiness StudiesFinancial Management1 Mark
Question
To face the competition given by Apple Inc., Samsung has to regularly update its technology. How does this affect Samsung's fixed capital requirements?
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Answer

Its fixed capital requirements would be high since it needs funds for replacement of assets frequently due to technology upgradation.

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