Question

Various public utility undertakings have to invest heavily on

• A. Current Assets
• B. Fixed Assets
• C. Fictitious Assets
• D. None of these

Hint:

Industries like railways and electricity depend more on fixed assets than current assets.

Answer 1

The Correct Option is B

Step 1: Understanding public utility undertakings.
Public utility undertakings include services like railways, electricity, water supply, and transport systems.
Step 2: Why they need fixed assets.
These industries require heavy investment in fixed assets like land, machinery, power stations, pipelines, and infrastructure.
Such assets are long-term and essential for service delivery.
Step 3: Option analysis.
- (A) Current Assets: Incorrect, these are short-term like cash and stock.
- (B) Fixed Assets: Correct, public utilities need large-scale infrastructure investment.
- (C) Fictitious Assets: Wrong, these are not real assets (like preliminary expenses).
- (D) None of these: Wrong, since (B) is right.
Step 4: Conclusion.
Public utility undertakings require huge investment in fixed assets.