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Question
Out of the following capital used in the cotton textile industry classify the following as fixed or circulating capital.
- Cotton yarns
- Dyes
- Power
- Weaving machines
- Factory buildings
- Machines
- Stocks of raw material lying in a factory
- A car owned by a taxi-driver
- Coal used in a factory
- Cotton used by a doctor
Solution
| Fixed capital | Circulating capital |
| Dyes | Cotton yarns |
| Weaving machines | Power |
| Factory buildings | Stocks of raw material lying in a factory |
| Machines | Coal used in a factory |
| A car owned by a taxi-driver | |
| Cotton used by a doctor |
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 |
______ capital is used once in production whereas ______ capital can be used for long time.
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?
Explain in brief the term sunk capital.
Distinguish between fixed and circulatory 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.
