Money in hand is an example ofA. Human capitalB. Fixed capitalC. Working capitalD. None of these
Question
Money in hand is an example of
A. Human capital
B. Fixed capital
C. Working capital
D. None of these
Solution
The answer is C. Working capital.
Step 1: Understand the terms
- Human capital refers to the skills, knowledge, and experience possessed by an individual or population.
- Fixed capital refers to any kind of real or physical capital that is not used up in the production of a product, like buildings, machinery, equipment, etc.
- Working capital refers to the funds which are used in the day-to-day trading operations of a business.
Step 2: Apply the terms to the question
- Money in hand does not refer to skills, knowledge, or experience, so it is not human capital.
- Money in hand is not a physical asset like a building or machinery, so it is not fixed capital.
- Money in hand can be used in the day-to-day operations of a business, so it is working capital.
Therefore, money in hand is an example of working capital.
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