Classify the following into fixed and working capital. Give reasons.
(i) A television set in a hotel room
(ii) Iron ore in a steel plant.

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Solution

i. Fixed capital:
Reason : A television set in a hotel room is an asset to the owner and can be used repeatedly.
ii. Working capital:
Reason: Iron ore in a steel plant can be used once since it is a raw material to the plant.

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Classify the following into fixed and working capital. Give reasons.(i) A television set in a hotel room(ii) Iron ore in a steel plant.

i. Fixed capital:Reason : A television set in a hotel room is an asset to the owner and can be used repeatedly.ii. Working capital:Reason: Iron ore in a steel plant can be used once since it is a raw material to the plant.

Classify the following into fixed and working capital. Give reasons.
(i) A television set in a hotel room
(ii) Iron ore in a steel plant.

i. Fixed capital:
Reason : A television set in a hotel room is an asset to the owner and can be used repeatedly.
ii. Working capital:
Reason: Iron ore in a steel plant can be used once since it is a raw material to the plant.