Explain the following term/concept: Fixed capital - Secretarial Practice

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Short Note

Explain the following term/concept:

Fixed capital

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Solution

Fixed capital is the capital which is used for buying fixed assets which are used for a longer period of time in the business. These assets are not meant for resale. In simple words fixed capital refers to capital invested for acquiring fixed assets. It stays in the business for long period almost permanently. Examples of fixed capital are - capital used for purchasing land and building, furniture, plant and machinery etc. Such capital is required usually at the time of establishment of a new company.

Concept: Capital Requirements
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2023-2024 (March) Official

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