12th Class Business Studies Financial Management Question Bank Financial Management (Long)

  • question_answer
    Radhika and Vani who are young fashion designers, left their job with a famous fashion designer chain to set - up a company ‘Fashionate Pvt. Ltd.’ they decided to run a boutique during the day and coaching classes for the entrance examination of National Institute of Fashion Designing in the evening. For the coaching centre, they hired the first floor of a nearby building. Their major expenses was the 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 photocopier. In the basement of the building of Fashionate Pvt. Ltd, Praveen and Ramesh were carrying on a printing and stationery business in the name of ‘Neo Prints Pvt. Ltd.’ Radhika approached Praveen with the proposal to by a photocopier jointly which could be used by both of them without making separate investment. Praveen agreed to this. Identify the factor affecting the fixed capital requirements of Fashionate Pvt. Ltd.                               [Delhi 2016]

    Answer:



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