Question

Write two example of fixed capital?

Answer 1

Answer:

Herer is the full explanation

Explanation:

A fixed capital example would be that if a firm invests in a building where the production process will take place, it would be referred to as fixed capital. Because –

Firstly, the building will not get directly consumed by the production process. But if the company doesn’t have the building, it wouldn’t be able to run the production process.

Secondly, investing in the building is a fixed capital because this building will serve the business for a long period of time and the building can be referred to as long term assets.

Thirdly, if the business thinks to sell out the building in the future, it will get a residual value even if its economic usefulness is exhausted.

HERE ARE THE TWO EXAMPLES

A) Building

B) Manufacturing machinery and equipment

Answer 2

Explanation:

A) Building

B) manufacturing machinery and equipment