Economic Awareness - Sectors of Indian Economy
Which of the following is an example of 'working capital'?
Which of the following is an example of 'working capital'?
medium Q6 of 15
Step-by-Step Solution
Step 1: Differentiate types of capital
Capital is classified into fixed capital and working capital.Step 2: Identify working capital
Working capital includes current assets like raw materials, cash, and inventory. Machinery and buildings are fixed capital. Land is a separate factor.Final Answer:
Raw materials → Option BQuick Check:
Working capital = raw materials and current assets ✅
Quick Trick: Working capital = raw materials, cash, inventory.
Common Mistakes:
MISTAKES- Confusing fixed capital (machinery) with working capital.
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