Maharashtra State BoardHSC Commerce 12th Board Exam
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Justify the following statement. Fixed capital stays in the business almost permanently. - Secretarial Practice

Short Note

Justify the following statement.

Fixed capital stays in the business almost permanently.

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Solution

Justification:

  1. Fixed capital is the capital which is used to purchase fixed assets of the business.
  2. These fixed assets are used for a longer period of time and are not meant for resale.
  3. In other words, fixed capital refers to the capital invested for acquiring fixed assets.
  4. Examples of fixed capital are capital used for purchasing land and building, furniture, plant and machinery etc. Hence, fixed capital stays in the business almost permanently.
Concept: Finance
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APPEARS IN

Balbharati Secretarial Practice 12th Standard HSC Maharashtra State Board
Chapter 1 Introduction To Corporate Finance
Exercise Q.6 | Q 3 | Page 13
SCERT Maharashtra Question Bank 12th Standard HSC Secretarial Practice Maharashtra State Board 2021
Chapter 1 Introduction To Corporate Finance
Justify the following statements | Q 1
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