Practice Fixed Capital (6.1) - Business Size and Finance

Practise this section

9 questions

Flashcard drill
3 cards from this section. Quick, good the night before a test.
Exercise
6 questions · about 4 min · pass mark 70%. Hints available.
Sign up to start the exercise
Quiz
3 questions · about 2 min · pass mark 70%. Hints available.
Sign up to start the quiz

6 sample questions

Question 1.
What are some components of fixed capital?
Show hintHide hint
Think about what physical assets a business needs.
Question 2.
Why is fixed capital important for businesses?
Show hintHide hint
Consider how it affects how much a company can produce.
3Question 3.
What does fixed capital primarily involve?
- Day-to-day expenses
- Long-term investments in assets
- Short-term liquidity
Show hintHide hint
Think about the kind of investments that last for a long time.
4Question 4.
Is machinery considered a fixed capital?
- True
- False
Show hintHide hint
Reflect on what helps in making products.
Question 5.
A start-up needs to purchase equipment worth $200,000 and a building worth $500,000. What impact will this fixed capital investment have on its growth strategy?
Show hintHide hint
Consider how a solid foundation allows a business to grow.
Question 6.
Evaluate the consequences of a business that delays purchasing essential fixed capital for two years.
Show hintHide hint
Think about how technology changes over time and the risks of falling behind.

5 more questions in this section. Enroll free to practise them all.