diesel to run the tractor : working capital , own tractor to a farmer : ?
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Answer:
Fixed capital
Explanation:
Because the tractor can be used over and over by the farmer as it's his own tractor !
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If diesel to run a tractor is working capital, then own tractor to a farmer is fixed capital
Explanation:
- Fixed capital and working capital may be listed as capital. Fixed capital is sustainable (durable)-use manufacturing goods that are used again and again in production until they wear off. Everything fixed capital is machinery, machines, tractors, factories etc. Machinery, tractors, tools, farm implements, warehouse etc., are all fixed capital.
- Capital fixed doesn't mean fixed in place. In comparison to the money spent on raw materials that are reclaimed as soon as goods are made from them, capital like farms, tractors and factories are considered "locked" as the money spent on such durable goods, stays fixed or unfulfilled for a long time.
- In the other hand , work capital is the single-use commodities of the manufacturers, such as raw material, fertilizers, diesel, fuel and electricity. They are used in a single manufacturing act. In fact, as products made from them are sold on the market, money that they spent is completely recovered.
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mention the difference between fixed capital and working capital ...
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