6 - Types of Capital
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Practice Questions
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Define fixed capital.
💡 Hint: Think about what types of purchases are made for the long haul.
What does working capital cover?
💡 Hint: Consider daily operations when thinking about this.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is fixed capital?
💡 Hint: Think of assets that last for several years.
Working capital is needed for which of the following?
💡 Hint: Consider regular bills and costs.
1 more question available
Challenge Problems
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A company needs $50,000 for purchasing new machinery (fixed capital) and $20,000 for monthly operational costs (working capital). How should they balance their finances?
💡 Hint: Think about short-term vs. long-term financing strategies.
What would happen if a business neglects its working capital needs despite having significant fixed capital?
💡 Hint: Consider the importance of liquidity in business.
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