Question

What kind of capital is required as a priority to set up a flour processing unit?

• A. Fixed capital
• B. Working capital
• C. Human capital
• D. Social capital

Answer 1

The correct option is A Fixed capital

Fixed capital is the portion of the total capital outlay of a business that is invested in physical assets such as factories, vehicles, and machinery that stay in the business almost permanently or, more technically, for more than one accounting period. This capital is required as a top priority to start a business.