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Direction: Read the following text and answer the questions given below:
Charu and Arpita, who are young fashion designers, left their job with a famous fashion designer chain to set–up a company ‘Trends Pvt. Ltd’. They decided to run a boutique during the day and coaching classes for entrance examination of National Institute of Fashion Designing in the evening. For the coaching centre, they took on lease the first floor of a nearby building. Their major expense was money spent on photocopying of notes for their students. They thought of buying a photocopier knowing fully that their scale of operations was not sufficient to make full use of the photocopier.
In the basement of the building of ‘Trends Pvt. Ltd.’, Ramesh and Suresh were carrying on a printing and stationery business in the name of ‘Fine Prints Pvt. Ltd.’ Charu approached Ramesh with the proposal to buy a photocopier jointly which could be used by both of them without making separate investment. Ramesh agreed to this.
Q. ’For the coaching centre, they took on lease the first floor of a nearby building.’ This statement represents which factor affecting the fixed capital requirements of Trends Pvt. Ltd.?
  • a)
    Nature of business
  • b)
    Financing alternatives
  • c)
    Growth prospects
  • d)
    Scale of operations
Correct answer is option 'B'. Can you explain this answer?
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Direction: Read the following text and answer the questions given bel...
Alternative finance is any type of business finance that doesn't come from a mainstream provider like a high street bank. Mainstream finance is great for many businesses but the banks often have criteria which smaller businesses can't fulfil, and they need other options.
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Direction: Read the following text and answer the questions given bel...
Understanding Fixed Capital Requirements
In the context of Trends Pvt. Ltd., Charu and Arpita's decision to lease the first floor of a building for their coaching center highlights a significant aspect of fixed capital requirements.
Factors Affecting Fixed Capital Requirements
- Nature of Business: The nature of the business directly influences the fixed capital needed. A boutique and coaching center typically require different levels of investment in equipment, space, and infrastructure.
- Financing Alternatives: This factor is crucial as it refers to the options available for funding business operations. By opting for a lease, Charu and Arpita are choosing a financing alternative that allows them to minimize initial capital outlay while securing the necessary space for their venture.
- Growth Prospects: This factor looks at the potential for business expansion. While Charu and Arpita may have growth aspirations, their immediate requirement is to establish a stable foundation, which is reflected in their leasing choice.
- Scale of Operations: The scale at which a business operates directly impacts fixed capital needs. Since Charu and Arpita are starting small, their choice of leasing aligns with their current operational capacity.
Conclusion
The correct answer is indeed option 'B' because taking a lease indicates a method of financing that allows the business to operate without a substantial upfront investment in property, thus addressing their immediate operational needs while keeping future growth in mind. This strategy reflects a prudent approach to managing fixed capital requirements in the early stages of their business.
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Direction: Read the following text and answer the questions given below:Charu and Arpita, who are young fashion designers, left their job with a famous fashion designer chain to set–up a company ‘Trends Pvt. Ltd’. They decided to run a boutique during the day and coaching classes for entrance examination of National Institute of Fashion Designing in the evening. For the coaching centre, they took on lease the first floor of a nearby building. Their major expense was money spent on photocopying of notes for their students. They thought of buying a photocopier knowing fully that their scale of operations was not sufficient to make full use of the photocopier.In the basement of the building of ‘Trends Pvt. Ltd.’, Ramesh and Suresh were carrying on a printing and stationery business in the name of ‘Fine Prints Pvt. Ltd.’ Charu approached Ramesh with the proposal to buy a photocopier jointly which could be used by both of them without making separate investment. Ramesh agreed to this.Q. ’For the coaching centre, they took on lease the first floor of a nearby building.’ This statement represents which factor affecting the fixed capital requirements of Trends Pvt. Ltd.?a)Nature of businessb)Financing alternativesc)Growth prospectsd)Scale of operationsCorrect answer is option 'B'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Direction: Read the following text and answer the questions given below:Charu and Arpita, who are young fashion designers, left their job with a famous fashion designer chain to set–up a company ‘Trends Pvt. Ltd’. They decided to run a boutique during the day and coaching classes for entrance examination of National Institute of Fashion Designing in the evening. For the coaching centre, they took on lease the first floor of a nearby building. Their major expense was money spent on photocopying of notes for their students. They thought of buying a photocopier knowing fully that their scale of operations was not sufficient to make full use of the photocopier.In the basement of the building of ‘Trends Pvt. Ltd.’, Ramesh and Suresh were carrying on a printing and stationery business in the name of ‘Fine Prints Pvt. Ltd.’ Charu approached Ramesh with the proposal to buy a photocopier jointly which could be used by both of them without making separate investment. Ramesh agreed to this.Q. ’For the coaching centre, they took on lease the first floor of a nearby building.’ This statement represents which factor affecting the fixed capital requirements of Trends Pvt. Ltd.?a)Nature of businessb)Financing alternativesc)Growth prospectsd)Scale of operationsCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: Read the following text and answer the questions given below:Charu and Arpita, who are young fashion designers, left their job with a famous fashion designer chain to set–up a company ‘Trends Pvt. Ltd’. They decided to run a boutique during the day and coaching classes for entrance examination of National Institute of Fashion Designing in the evening. For the coaching centre, they took on lease the first floor of a nearby building. Their major expense was money spent on photocopying of notes for their students. They thought of buying a photocopier knowing fully that their scale of operations was not sufficient to make full use of the photocopier.In the basement of the building of ‘Trends Pvt. Ltd.’, Ramesh and Suresh were carrying on a printing and stationery business in the name of ‘Fine Prints Pvt. Ltd.’ Charu approached Ramesh with the proposal to buy a photocopier jointly which could be used by both of them without making separate investment. Ramesh agreed to this.Q. ’For the coaching centre, they took on lease the first floor of a nearby building.’ This statement represents which factor affecting the fixed capital requirements of Trends Pvt. Ltd.?a)Nature of businessb)Financing alternativesc)Growth prospectsd)Scale of operationsCorrect answer is option 'B'. Can you explain this answer?.
Solutions for Direction: Read the following text and answer the questions given below:Charu and Arpita, who are young fashion designers, left their job with a famous fashion designer chain to set–up a company ‘Trends Pvt. Ltd’. They decided to run a boutique during the day and coaching classes for entrance examination of National Institute of Fashion Designing in the evening. For the coaching centre, they took on lease the first floor of a nearby building. Their major expense was money spent on photocopying of notes for their students. They thought of buying a photocopier knowing fully that their scale of operations was not sufficient to make full use of the photocopier.In the basement of the building of ‘Trends Pvt. Ltd.’, Ramesh and Suresh were carrying on a printing and stationery business in the name of ‘Fine Prints Pvt. Ltd.’ Charu approached Ramesh with the proposal to buy a photocopier jointly which could be used by both of them without making separate investment. Ramesh agreed to this.Q. ’For the coaching centre, they took on lease the first floor of a nearby building.’ This statement represents which factor affecting the fixed capital requirements of Trends Pvt. Ltd.?a)Nature of businessb)Financing alternativesc)Growth prospectsd)Scale of operationsCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of Direction: Read the following text and answer the questions given below:Charu and Arpita, who are young fashion designers, left their job with a famous fashion designer chain to set–up a company ‘Trends Pvt. Ltd’. They decided to run a boutique during the day and coaching classes for entrance examination of National Institute of Fashion Designing in the evening. For the coaching centre, they took on lease the first floor of a nearby building. Their major expense was money spent on photocopying of notes for their students. They thought of buying a photocopier knowing fully that their scale of operations was not sufficient to make full use of the photocopier.In the basement of the building of ‘Trends Pvt. Ltd.’, Ramesh and Suresh were carrying on a printing and stationery business in the name of ‘Fine Prints Pvt. Ltd.’ Charu approached Ramesh with the proposal to buy a photocopier jointly which could be used by both of them without making separate investment. Ramesh agreed to this.Q. ’For the coaching centre, they took on lease the first floor of a nearby building.’ This statement represents which factor affecting the fixed capital requirements of Trends Pvt. Ltd.?a)Nature of businessb)Financing alternativesc)Growth prospectsd)Scale of operationsCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Direction: Read the following text and answer the questions given below:Charu and Arpita, who are young fashion designers, left their job with a famous fashion designer chain to set–up a company ‘Trends Pvt. Ltd’. They decided to run a boutique during the day and coaching classes for entrance examination of National Institute of Fashion Designing in the evening. For the coaching centre, they took on lease the first floor of a nearby building. Their major expense was money spent on photocopying of notes for their students. They thought of buying a photocopier knowing fully that their scale of operations was not sufficient to make full use of the photocopier.In the basement of the building of ‘Trends Pvt. Ltd.’, Ramesh and Suresh were carrying on a printing and stationery business in the name of ‘Fine Prints Pvt. Ltd.’ Charu approached Ramesh with the proposal to buy a photocopier jointly which could be used by both of them without making separate investment. Ramesh agreed to this.Q. ’For the coaching centre, they took on lease the first floor of a nearby building.’ This statement represents which factor affecting the fixed capital requirements of Trends Pvt. Ltd.?a)Nature of businessb)Financing alternativesc)Growth prospectsd)Scale of operationsCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for Direction: Read the following text and answer the questions given below:Charu and Arpita, who are young fashion designers, left their job with a famous fashion designer chain to set–up a company ‘Trends Pvt. Ltd’. They decided to run a boutique during the day and coaching classes for entrance examination of National Institute of Fashion Designing in the evening. For the coaching centre, they took on lease the first floor of a nearby building. Their major expense was money spent on photocopying of notes for their students. They thought of buying a photocopier knowing fully that their scale of operations was not sufficient to make full use of the photocopier.In the basement of the building of ‘Trends Pvt. Ltd.’, Ramesh and Suresh were carrying on a printing and stationery business in the name of ‘Fine Prints Pvt. Ltd.’ Charu approached Ramesh with the proposal to buy a photocopier jointly which could be used by both of them without making separate investment. Ramesh agreed to this.Q. ’For the coaching centre, they took on lease the first floor of a nearby building.’ This statement represents which factor affecting the fixed capital requirements of Trends Pvt. Ltd.?a)Nature of businessb)Financing alternativesc)Growth prospectsd)Scale of operationsCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of Direction: Read the following text and answer the questions given below:Charu and Arpita, who are young fashion designers, left their job with a famous fashion designer chain to set–up a company ‘Trends Pvt. Ltd’. They decided to run a boutique during the day and coaching classes for entrance examination of National Institute of Fashion Designing in the evening. For the coaching centre, they took on lease the first floor of a nearby building. Their major expense was money spent on photocopying of notes for their students. They thought of buying a photocopier knowing fully that their scale of operations was not sufficient to make full use of the photocopier.In the basement of the building of ‘Trends Pvt. Ltd.’, Ramesh and Suresh were carrying on a printing and stationery business in the name of ‘Fine Prints Pvt. Ltd.’ Charu approached Ramesh with the proposal to buy a photocopier jointly which could be used by both of them without making separate investment. Ramesh agreed to this.Q. ’For the coaching centre, they took on lease the first floor of a nearby building.’ This statement represents which factor affecting the fixed capital requirements of Trends Pvt. Ltd.?a)Nature of businessb)Financing alternativesc)Growth prospectsd)Scale of operationsCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Direction: Read the following text and answer the questions given below:Charu and Arpita, who are young fashion designers, left their job with a famous fashion designer chain to set–up a company ‘Trends Pvt. Ltd’. They decided to run a boutique during the day and coaching classes for entrance examination of National Institute of Fashion Designing in the evening. For the coaching centre, they took on lease the first floor of a nearby building. Their major expense was money spent on photocopying of notes for their students. They thought of buying a photocopier knowing fully that their scale of operations was not sufficient to make full use of the photocopier.In the basement of the building of ‘Trends Pvt. Ltd.’, Ramesh and Suresh were carrying on a printing and stationery business in the name of ‘Fine Prints Pvt. Ltd.’ Charu approached Ramesh with the proposal to buy a photocopier jointly which could be used by both of them without making separate investment. Ramesh agreed to this.Q. ’For the coaching centre, they took on lease the first floor of a nearby building.’ This statement represents which factor affecting the fixed capital requirements of Trends Pvt. Ltd.?a)Nature of businessb)Financing alternativesc)Growth prospectsd)Scale of operationsCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice Commerce tests.
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