(i) Nature of business, as a trading concern needs a lower investment in fixed assets as compared to a manufacturing concern since it doesn't require to purchase the plant and machinery.

(ii) Scale of operations, as a larger organisation operating at a higher scale needs bigger plant and more space and hence higher investment in fixed assets.

(iii) Choice of technique, as a capital intensive organisation requires higher investment in plant and machinery and thus requires higher fixed capital than a labour intensive organisation.

(iv) Technology up gradation, as industries where assets become obsolete sooner requires higher fixed capital to purchase such assets.

(v) Higher growth prospects, require higher investment in fixed assets to meet anticipated demand quicker.

(vi) Availability of financing alternatives like leasing requires lower investment in fixed assets and hence requires less fixed capital.

(vii) Collaboration reduces the level of investment in fixed asset.