MANAGEMENT

BUISENESS MANAGEMENT

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
C
Either A or B
D
None of the above
Explanation: 

Detailed explanation-1: -Fixed capital is the portion of total capital outlay of a business invested in physical assets such as factories, vehicles, and machinery that stay in the business almost permanently, or, more technically, for more than one accounting period.

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.