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

Economics
JAMB 2018

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
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Correct Answer: Option C
Explanation

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. 


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WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 24709
WAEC offline past questions - with all answers and explanations in one app - Download for free
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WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 24709
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
WAEC May/June 2024 - Practice for Objective & Theory - From 1988 till date, download app now - 99995
WAEC offline past questions - with all answers and explanations in one app - Download for free