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[[1]] capital serves a fixed purpose over some time and is used in production at some fixed places.

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Detailed Solution

Fixed capital serves a fixed purpose over some time and is used in production at some fixed places.
The capital which serves a fixed purpose over some time and is used in production at some fixed places is referred to as the fixed capital. Non-current assets that would be useful to the company for more than one accounting period are purchased using fixed capital. No firm can be operated or even exist without finance. Working capital and fixed capital are the two types of capital that can be distinguished.

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[[1]] capital serves a fixed purpose over some time and is used in production at some fixed places.