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Questions
Distinguish between sunk and floating capital. Give an example of each.
Distinguish between sunk capital and floating capital.
Solution
Sunk capital | Floating capital | |
i. | Sunk capital is one that can only be put to single use. | Floating capital is one which can be put to several uses. |
ii. | e.g. a printing machine can only be put for printing. | e.g. money, fuel, electricity, steel, etc. |
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