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A trading concern usually needs how much fixed capital compared with a manufacturing concern?
AA smaller amount
BA larger amount
CThe same amount
DTwice the amount
Answer & Solution
Correct answer: A. A smaller amount
1. Fixed capital depends on the nature of business.
2. Manufacturing needs heavy plant.
3. So trading needs a smaller amount.
_Source: NCERT Class 11 Business Studies, Chapter 8, Sources of Business Finance._
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