Factors affecting the requirement of Fixed Capital: 

1. Nature of Business: The type of business has-a bearing upon the fixed capital requirement. A trading concern needs lower investment in fixed assets compared with a manufacturing organization. 

2. Scale of Operations: A larger organization operating at a higher scale needs the bigger plants, more space, etc and therefore, requires higher investment in fixed assets. A smaller organization requires less fixed capital. 

3. Choice of Technique: Some organizations are capital intensive which require higher investment in plant and machinery. Therefore the requirements of such capital intensive business units are more. Labour intensive organizations require less fixed capital comparatively. 

4. Technology Up-gradation: Higher investment in fixed assets requires more fixed capital. The organizations which use assets which are prone to obsolescence require higher fixed capital to purchase such assets repeatedly.