Question

________ is known as fixed capital.

• A. Furniture and fixtures
• B. Land and building
• C. Plant and machinery
• D. All of the above

Answer 1

Answer: (D)

All of the above

Fixed capital refers to the investment of a business into long term assets. Management of fixed capital involves allocation of firm’s capital to different projects or assets with long-term implications for the business. Some of the long term assets that a business invests in are furniture and fixtures, land and buildings, plant and machinery.