Advertisements
Advertisements
Question
Explain in brief the term sunk capital.
Solution
It is that type of capital which can only be put to a single use. It is also called as 'specialised capital'. It always remains at the place where it is fixed. For example, a printing machine can only be put for printing and nothing else.
APPEARS IN
RELATED QUESTIONS
Identify what type of capital is it?
Is a multiple use power generating machine owned by a factory, sunk capital or floating capital? Give two arguments to support of your answer.
Match the following and select the correct option.
| Column I | Column II | ||
| (i) | Capital which is given to workers in form of wages | (A) | Circulating capital |
| (ii) | Producer goods having long life | (B) | Floating capital |
| (iii) | Goods which can be used for a specific purpose only once | (C) | Fixed capital |
| (iv) | Goods which can be put to alternative uses or by several industries | (D) | Remunerative capital |
Observe the relationship of the first pair of words and complete the second pair.
Office furniture; Fixed capital
Power of running the plant ______
Which of the following types of capital can be used only for a specific purpose?
Which of the following goods will be considered circulating capital?
Distinguish between fixed and circulatory capital.
Define real capital.
Classify the following into fixed capital and working capital. Give reasons:
A television in a hotel room.
Classify the following into fixed capital and working capital. Give reasons:
Iron ore in steel plant.
