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Which of the following is working capital in the farming sector?
tractor
money
threshing machine
land
- Option 1: Tractor
- A tractor is classified as a fixed capital asset in farming. It is used for various farming activities over many years and is not consumed in the production process.
- Option 2: Money
- Correct Answer: Money is the working capital in the farming sector. It is essential for day-to-day operations such as purchasing seeds, fertilizers, and paying labor wages. It is flexible and replenished as it flows through the business cycle.
- Option 3: Threshing Machine
- Similar to a tractor, a threshing machine is also considered fixed capital. It is an investment used over multiple production cycles to increase efficiency.
- Option 4: Land
- Land is another example of fixed capital. It serves as the foundational asset where crops are grown, but it remains constant and is not consumed in the process of producing farm products.
By: Parvesh Mehta ProfileResourcesReport error
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