JAMB - Economics (2018 - No. 73)
The form of capital that is required for the day-to-day running of production activities is called?
Fixed capital
Social Capital
Circulating capital
Liquid capital
Forklaring
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.