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Business Studies

Working Capital and Fixed Capital

Which capital...

Question

Which capital deals with long-term strategic objectives of business?

A

Opportunity Cost

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B

Fixed Capital

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C

Working Capital

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D

Equity Capital

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Solution

The correct option is B
Fixed Capital

Fixed capital deals with long-term strategic objectives. While starting a business, strategic decisions have to be made in regard to buying of land/building, plant and machinery and so on.

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