Question

13.Read the source given below and answer the question that follows:

Karim has opened a computer class centre in the village. In recent years a

large number of students have been attending college in Shahpur town.

Karim found that a number of students from the village are also attending

computer classes in the town. There were two women in the village who

had a degree in computer application. He decided to employ them. He

bought computers and set up the classes in the front room of his house

overlooking the market. High school students have started attending them

in good numbers.

a) What are the fixed capitals used by Kareem?b) What is the advantage of setting up computer centre in his own house?
b) What is the advantage of setting up computer centre in his own house?
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Answer 1

Answer:

A) Well Kareem is one genius capitalist you see he is using machine(Computer) as a fixed capital and a well educated staff as a human capital and equity and working capital as his house.

B)The advantages Kareem has he doesn't have to pay for working capital that his office his house so he has no worries about it,he also has good equity that is he is fair about the staff(fairness in both sides), Good human resource.

Hope it helps.