(a) Nature of business: Organisations that deal in services or trading (having a small operating cycle) require less fixed capital. On the other hand, manufacturing firms, involving a large operating cycle, require higher amount of fixed capital. Thus, we can say that fixed capital depend upon nature of business.
(b) Growth prospects: Higher growth and expansion of a company is associated with higher production, more sales, larger inputs, etc. This requires higher level of machinery and equipment, resulting in higher fixed capital. On the other hand, companies with low growth prospects require less fixed capital.
(c) Diversification: Greater diversification implies larger scale of operations, which requires greater investment in plants, machinery, building, etc. Therefore, it requires greater fixed capital. On the other hand, companies with low or no diversification require less fixed capital.
(d) Level of collaboration: At times, business organisations undergo collaboration with each other and jointly establish certain facilities. In such cases, individual organisations' requirement for fixed capital reduces.