Fixed capital stands for ______.

money with the proprietor

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tools, machines, buildings etc. which can be used in production over many years

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money deposited in the bank

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total share of capital

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Solution

The correct option is B tools, machines, buildings etc. which can be used in production over many years
Fixed capital refers to investment in long-term assets. Management of fixed capital involves the allocation of the firm’s capital to different projects or assets with long-term implications for the business. For example, tools, machines, buildings, etc. which can be used in production over many years.

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