Fixed capital refers to the physical assets that a business or organization owns and uses to produce goods or services over an extended period. These assets are also known as "fixed assets" or "long-term assets."
Fixed capital can include buildings, machinery, equipment, vehicles, computers, and other physical assets that are used in the production process. These assets are not intended for resale, but instead, they are essential for the operation of the business or organization.
Fixed capital is distinguished from working capital, which refers to the funds that a business uses to cover its short-term operational expenses, such as rent, salaries, and inventory. Fixed capital investments require large sums of money and are typically funded by long-term loans or equity investments.
Fixed capital is an important factor in determining a company's production capacity, efficiency, and competitiveness. It is also a significant factor in determining a company's financial performance and the value of the business as a whole.
Fixed capital refers to the long-term assets that a business or individual owns and uses in the production of goods or services. Some examples of fixed capital include:
1. Buildings, such as factories or office buildings.
2. Machinery and equipment, such as computers or manufacturing equipment.
3. Land, such as a plot of land that a business owns for future development.
4. Vehicles, such as trucks or delivery vans.
5. Furniture and fixtures, such as desks or display cases.
Fixed capital is important because it provides the necessary resources for a business to operate and produce goods or services. These assets are usually held for a long period of time and are not easily converted to cash. However, they are crucial to the success of a business and can be used as collateral for loans or other financing options.
Answers & Comments
Verified answer
Explanation:
MARK IT AS BRAINLIST ♥️
Here is your answer
Fixed capital refers to the long-term assets that a business or individual owns and uses in the production of goods or services. Some examples of fixed capital include:
1. Buildings, such as factories or office buildings.
2. Machinery and equipment, such as computers or manufacturing equipment.
3. Land, such as a plot of land that a business owns for future development.
4. Vehicles, such as trucks or delivery vans.
5. Furniture and fixtures, such as desks or display cases.
Fixed capital is important because it provides the necessary resources for a business to operate and produce goods or services. These assets are usually held for a long period of time and are not easily converted to cash. However, they are crucial to the success of a business and can be used as collateral for loans or other financing options.
HOPE IT WILL HELP YOU
FOLLOW ME FOR MORE