Question : Which of the following statements is incorrect?

Option 1: Fixed capital affects the long term growth of the business.

Option 2: Fixed capital involves large amount of funds.

Option 3: There is no risk involved in fixed capital.

Option 4: None of the above

Question

Question : Which of the following statements is incorrect?

Option 1: Fixed capital affects the long term growth of the business.

Option 2: Fixed capital involves large amount of funds.

Option 3: There is no risk involved in fixed capital.

Option 4: None of the above

Team Careers360 · Accepted Answer

Correct Answer: There is no risk involved in fixed capital.

Solution : Capital budgeting in decisions involve huge funds. It affects return of the firm as a whole in the long term. So these decisions influence the overall business risk complexion of the firm.

Hence, option C is correct.

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Question : Which of the following statements is incorrect? Option 1: Fixed capital affects the long term growth of the business. Option 2: Fixed capital involves large amount of funds. Option 3: There is no risk involved in fixed capital. Option 4: None of the above

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Question : Which of the following statements is incorrect?

Option 1: Fixed capital affects the long term growth of the business.

Option 2: Fixed capital involves large amount of funds.

Option 3: There is no risk involved in fixed capital.

Option 4: None of the above