Rizul 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 felt that the mobile phones are prone to quick obsolescence and a heavy fixed capital investment would be required regularity in this business. Therefore, he convinced his son to start a furniture business. Identify the factor affecting fixed capital requirements, which made Rizul to choose fumiture business over mobile phones.

Dear student,

Technology upgradation is the the factor affecting fixed capital requirements, which made Rizul to choose fumiture business over mobile phones.

Regards

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