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प्रश्न
How would you classify the following - as sunk capital or floating capital? Give reasons.
Printing Machine
कारण बताइए
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उत्तर
A Printing Machine would be classified as sunk capital.
Reason:
- Sunk capital is capital that can only be put to a single special use and it cannot be easily transferred to other uses. It is also called “specialised capital”.
- A printing machine is designed specifically for printing and cannot be used for any other purpose. Therefore, it must continue to be used for printing and cannot be transferred to a different kind of production.
- Hence, a printing machine fits the description of sunk capital because it is specialised and single-use in terms of productive application.
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