CBSE Class 12 Business Studies 2016 Outside Delhi set 1

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Question : 6
Total: 34
Rizul Bhattacharya after leaving his job wanted to start a Private Limited Company with his son. His son was keen that the company may start manufacturing of Mobile-phones with some unique features. Rizul Bhattacharya felt that the mobile phones are prone to quick obsolescence and a heavy fixed capital investment would be required regularly in this business. Therefore he convinced his son to start a furniture business.
Identify the factor affecting fixed capital requirements which made Rizul Bhattacharya to choose furniture business over mobile phones.
Solution:  
The factor affecting fixed capital requirements which made Rizul Bhattacharya to choose furniture business over mobile phones is 'Technology Upgradation'.
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