he two components of capital are fixed capital and Blank______ capital.Multiple choice question.relationshipworkingpotential

To assess the question about the two components of capital, let's analyze the options provided.

1. Understanding Capital Components:

   • Fixed capital refers to long-term investments in physical assets that are used in production but are not easily liquidated and do not change in value frequently, like buildings, machinery, and equipment.
   • The second type of capital should align with the roles of capital in an economy.

2. Evaluating Options:

   • Relationship: This doesn't directly connect to the notion of capital components.
   • Working Capital: This term refers to the short-term capital required for day-to-day operations. It represents the liquidity available for the management of operational expenses.
   • Potential Capital: This is not a recognized term in the standard categorizations of capital types.

3. Conclusion: Given the definitions and explanations, working capital accurately complements fixed capital as one of the key components of capital.

Final Answer

The two components of capital are fixed capital and working capital.