1. Nature of business: The amount of fixed capital requirement basically depends on the nature of the business. Some business requires huge fixed capital and some need little fixed capital depending on their operations. The need for fixed capital will be more as the concern needs to invest in fixed assets like plant, machinery & Buildings etc.

2. Scale of operation: The scale of operation is the other important determinant of fixed capital requirement of a business. Larger the size and the scale of operations, the greater will be the amount of fixed capital requirement. 

3. Growth & Expansion prospects: Higher growth of organization generally requires a higher investment in fixed assets. As the organization as to create higher capacity’ in order to meet the higher demand Suffer 

4. Choice of technique of production: An organization may be capital intensive or labor-intensive. A capital intensive organization requires a higher investment in plant and machinery when compared to a labor-intensive organization. Thus the requirement of fixed capital for capital intensive organizations would be higher. 

5. Method of fixed asset acquisition: Organizations purchasing fixed asset on cash basis requires a large amount of fixed capital. Those organizations which acquire fixed assets on hire purchase and installment system requires lesser amount of fixed capital.