Under which of the following circumstances the fixed capital requirement of a business is not likely to be high?

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KollegeApply · Accepted Answer

When the financial alternatives are easily available Explanation: • Manufacturing needs machinery, so high fixed capital is required. • More machines = higher fixed capital. • High growth = need for more fixed assets, so more fixed capital. • When financial alternatives (like leasing, borrowing) are available, a business may not need high fixed capital because it can use external sources instead of investing its own funds.

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