Question

Write a short note on fixed capital

Answer 1

Answer:

Fixed capital is a compulsory initial investment made in the business.It helps to lay down the basic infrastructure on which business is supposed to stand and flourish in a long run.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.It is also used for purchasing intangible assets like patents, copyrights, goodwill, etc and also required . for promoting the business