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The workers at an automobile manufacturing plant would be considered to be a form of _____ capital

Sagot :

The workers at an automobile manufacturing plant would be considered to be a form of fixed capital.

Fixed capital is the part of the general capital outlay of a business invested in bodily belongings together with factories, cars, and equipment that stay inside the business nearly permanently, or, more technically, for multiple accounting duration.

One way of measuring capital intensity is physical capital per worker. for example, car production requires a full-size quantity of luxurious equipment for every employee. That makes car manufacturing a capital-extensive enterprise with huge capital fees.

Even as cash float measures how lots cash the organization generates or consumes in a given duration, operating capital is the distinction between the organisation's current property — consisting of cash and other property that may be converted into coins inside a yr — and its modern liabilities, including payroll, debts payable and accrued.

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