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State any three… (Class 12 Business Studies 2026, Q22b)

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Business StudiesCBSE Class 12 · Board exam 2026, set 66/5/1 · 3 marks · Short answer

CBSE Class 12 Business Studies 2026: question 22(b)

Set in the CBSE Class 12 board exam of 2026, paper 66/5/1, section B, question 22(b), for 3 marks. Try it first; the hints and our step-by-step solution are below.

Q22(b) · 3 marks · Short answerFinancial Management

State any three factors that determine the requirement of fixed capital of a company.

Source: official question paper from cbse.gov.in (PDF). See it in the full 2026 board paper, set 66/5/1.

Hints

Open one hint at a time and try again before the next.

Hint 1

Trading vs manufacturing.

Hint 2

Machines vs labour.

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Nature of business: A manufacturing concern needs more fixed assets than a trading concern.

    1 mark

  2. Scale of operations: A larger scale needs bigger plant and more space.

    1 mark

  3. Choice of technique: A capital-intensive firm needs more plant and machinery than a labour-intensive one. (Also: technology upgradation, growth prospects, diversification, financing alternatives, level of collaboration.)

    1 mark

Answer: Any three: nature of business, scale of operations, choice of technique, technology upgradation, growth prospects, diversification, financing alternatives, collaboration.

Where the marks are

  • Any three factors, 1 each (½ each if only listed)

Revise the chapter

Practise this chapterBoard-style questions from Financial Management, one at a time, marked against the answer key and marking points.Back to the full paper2026 board paper, set 66/5/1: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.