Question

What capital is needed as first prirority to set up a jaggery manufacturing unit ?

CBSE Class IX Social Science VSA (1 Mark)

Answer 1

Fixed capital is needed as first priority to set up a jiggery manufacturing unit.

Fixed capital includes the assets and capital investments which are needed for startups and for conducting business, even at a minimal stage.

These assets are considered fixed in the sense that they are not consumed or destroyed during the actual production of a good or service but have a reusable value.

The amount of fixed capital needed to set up a jiggery manufacturing is quite variable, especially from industry to industry.