___ is more integral to a firm’s business plan because it directly affects profitability. It is typically expensive and is used to purchase assets that have a long, useful life.

Working Capital

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Fixed Capital

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is B
Fixed Capital

Fixed capital is more integral to a firm’s business plan because it directly affects profitability. It is typically expensive and is used to purchase assets that have a long, useful life.

Suggest Corrections

Similar questions

___is more integral to a firm’s business plan because it directly affects profitability. It is typically expensive and is used to purchase assets that have a long, useful life. This includes machinery, buildings or production plants, and other long-term investments.

Q. is more integral to a firm's business plan because it directly affects profitability.

(i) A company is having a current ratio of 3 : 1. Its current liabilities are Rs 90,000. The accountant of the firm is interested in maintaining it to its standard ratio by purchasing certain assets on credit. Find out the value of asset to be purchased.

(ii) A company is having its operating ratio equals to 80 $%$ . Find out its operating profit ratio.

Q. A business earned an average profit of Rs.

8, 00, 000

during the last few years. The normal rate of profit in the similar type of business is

10

. The total value of assets and liabilities of the business were Rs.

22, 00, 000

and Rs.

5, 60, 000

respectively. Calculate the value of goodwill of the firm by super profit method if it is valued at

2^{\frac{1}{2}}

years purchase of super profit.

The liquidity of a business firm is measured by its ability to satisfy its long-term obligations as they become due. What are the ratios used for this purpose?

___ is more integral to a firm’s business plan because it directly affects profitability. It is typically expensive and is used to purchase assets that have a long, useful life.

The correct option is B Fixed Capital Fixed capital is more integral to a firm’s business plan because it directly affects profitability. It is typically expensive and is used to purchase assets that have a long, useful life.

The correct option is B
Fixed Capital

Fixed capital is more integral to a firm’s business plan because it directly affects profitability. It is typically expensive and is used to purchase assets that have a long, useful life.