Question

WHAT IS Fixed capital?

Answer 1

It is a part of total capital invested in the business. It has a permanent existence in the business to meet its long-term needs. It is used for purchasing fixed assets like land, building, plant, machinery, etc.

Answer 2

Tools and machines range from very simple tools such as farmer's plug to sophisticated machines such as generators, turbines, computers etc.

Tools,machines,buildings can be used in production over many years and are called Fixed Capital.