Which of the following statements is not true with regard to use of fixed capital?

Question

KollegeApply · Accepted Answer

The business risk involved is low. Explanation: • Fixed capital is used to buy long-term assets like machinery, buildings, and land. • These decisions involve large funds, affect long-term growth, and are often irreversible. • However, they carry high risk, not low risk, because once you invest in fixed assets, you can't easily change or sell them.

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