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Explain the following term/concept. Fixed capital

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Question

Explain the following term/concept.

Fixed capital

Explain
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Solution

  1. Fixed capital refers to capital invested in fixed assets. Fixed Capital is invested in long-term assets such as land, building, equipment, etc.
  2. Investor invests money in fixed capital to make a future profit. Fixed capital is usually required at the time of the establishment of the company. 
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Chapter 1: Introduction To Corporate Finance - Exercises [Page 13]

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Balbharati Secretarial Practice [English] Standard 12 Maharashtra State Board
Chapter 1 Introduction To Corporate Finance
Exercises | Q 2. 3. | Page 13
SCERT Maharashtra Secretarial Practice [English] Standard 12 Maharashtra State Board
Chapter 1 Introduction To Corporate Finance
Explain the following terms / concepts | Q 1

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