BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

FINANCIAL MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Fixed capital is the money invested in fixed assets which is to be used over a long period of time.
A
True
B
False
Explanation: 

Detailed explanation-1: -Fixed capital consists of assets that are not consumed or destroyed in the production of a good or service and can be used multiple times. Property, plant, and equipment are standard fixed capital items. Fixed capital assets are usually illiquid items and are depreciated over time.

Detailed explanation-2: -Fixed Capital. Fixed capital is the amount of investment done by a company in its long-term assets, as known as fixed assets.

Detailed explanation-3: -Fixed assets are produced non-financial assets that are used repeatedly or continuously in production processes for more than one year. Fixed assets consist of dwellings, other buildings and structures, machinery and equipment, weapons systems, cultivated biological resources, and intellectual property products.

Detailed explanation-4: -Fixed capital refers to investment in long-term assets. Such decisions are known as investment decisions or capital budgeting decisions. These decisions affect the growth, profitability and risk of the business in the long run.

Detailed explanation-5: -False: It is called fixed capital.

There is 1 question to complete.