Q. 114.7( 3 Votes )

Write any four ch

Answer :

Capital, along with land and labour is an important factor of production.


1. It is a man-made factor of production.


2. Capital is continuously needed in each and every stage of production, right from procurement of raw materials till the sale of the finished product in the market.


3. The fixed capital which is required to procure long-term utilities like machinery and tools needs a huge amount.


4. Raw materials and the money which we have in hand is the working capital.


5. The capital required can be mobilised by using one’s own savings or from borrowings from banks or money lenders.


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