Advertisements
Advertisements
Question
Distinguish between sunk capital and floating capital
Solution
Sunk capital and floating capital:
Sunk capital is the one which can only be put to a single use. It is also known as specialised capital. It always remains in a fixed place. For example, a printing machine.
Floating capital is the capital which can be used in alternative lines of production. It is also called free capital. For example, steel, wood, raw materials etc.
APPEARS IN
RELATED QUESTIONS
Write short notes Types of capital.
Answer the following question.
What are the features of capital?
(i) Define capital formation.
(ii) Briefly discuss the process of capital formation.
______ is the man made physical goods used to produce other goods and services.
Justify the following in brief:
Capital is an immobile factor in the short run.
Capital as a factor of production.
State one important function of capital.
Differentiate between:
Capital and wealth
Define human capital.
Distinguish between fixed capital and working capital.
