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
The correct answer is: 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.