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Question

Which of the following can be considered as capital?

A
Raw materials
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B
Loans
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C
Machinery
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D
Labourers
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Solution

The correct options are
B Loans
C Machinery
Capital is the man-made tangible resources which are used for the production of a product. Items like machinery and tools required by to manufacture a product is considered as a capital. Loans which a company takes to use as wages or to buy raw materials also falls under capital.

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