Factors Determining the Requirements of Fixed Capital

Fixed capital is the fund which is required for the purchase of those assets that are to be used over and over for a long period. Such assets are land, machinery, building, payment rights, copy rights and other overhead expenses. These expenses are born regardless of the number of units produced. Fixed capital is, thus, the funds which are required not only for the purchase of fixed assets but also non-current assets at the start of business.