Question

Match the capitals with their corresponding examples.

• A. Cotton
• B. Machine
• C. Labour

Answer 1

Fixed capital is the capital that is invested by a company to procure the fixed assets required for the smooth functioning of its business. Fixed capital may refer to the machinery or the tools used in an industry.

Working capital is the capital that is required by a company to finance its day-to-day activities. Working capital refers to consumables used in the production such as cotton, oil, or fuel.

Human capital refers to the mental faculties, manual labour, and other intangible assets of individuals.