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Question
________ capital refers to investment in long-term assets, which involves allocation of firm's capital to different projects or assets with long-term implications for the business.
________ capital refers to investment in long-term assets, which involves allocation of firm's capital to different projects or assets with long-term implications for the business.
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Solution
The correct option is C Fixed
Fixed capital is capital or money that we invest in fixed assets. In other words, money that we invest in assets of a durable nature. These are assets that we repeatedly use over a long period. We can also use the term ‘fixed investment‘ with the same meaning.Fixed assets are tangible assets that we cannot convert into cash easily. Property is an example of a fixed asset. So are plant and equipment.
Fixed capital is capital or money that we invest in fixed assets. In other words, money that we invest in assets of a durable nature. These are assets that we repeatedly use over a long period. We can also use the term ‘fixed investment‘ with the same meaning.
Fixed assets are tangible assets that we cannot convert into cash easily. Property is an example of a fixed asset. So are plant and equipment.
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