The form of capital that is required for the day-to-day running of production activities is called?

  • A Fixed capital
  • B Social Capital
  • C Circulating capital
  • D Liquid capital
jamb 2018economics

The correct answer is C. Circulating capital

Circulating capital otherwise known as working capital is the money used for the day-to-day operations/running of the business. Circulating capital includes cash, operating expenses, raw materials, inventory-in-process, finished goods inventory, and accounts receivable.

Previous question Next question