Question

Distinguish between sunk and floating capital. Give an example of each.

Distinguish between sunk capital and floating capital.

Answer 1

	Sunk capital	Floating capital
i.	Sunk capital is one that can only be put to single use.	Floating capital is one which can be put to several uses.
ii.	e.g. a printing machine can only be put for printing.	e.g. money, fuel, electricity, steel, etc.