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Question
Fixed capital is also referred as circulating capital.
Options
True
False
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Solution
This statement is False.
Explanation:
Fixed capital refers to long-term investments in tangible and intangible assets like land, buildings, machinery, and patents, which are used for production over a long period. Circulating capital, on the other hand, refers to short-term assets like raw materials, inventory, and cash, which are continuously used and replenished in the business cycle. Therefore, fixed capital is not the same as circulating capital.
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