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Question
Write short note on the following:
Types of capital
Solution
Capital can be classified into the following categories:
i. On the basis of ownership:
b. Public capital - It is owned by the government or a society.
ii. On the basis of mobility:
b. Floating capital - It is the capital which is used for a variety of purposes. For example - electricity.
iii. On the basis of nature:
b. Money capital - It is the capital which is in the form of money. This capital is used to purchase real capital.
iv. On the basis of durability:
b. Working capital - It refers to the capital which is used in the process of production only once.
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