Which of the following is related to working capital?

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Raw materials and land

Raw materials and building.

Raw material and money in hand

Money in hand and labour.

answer is A.

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Detailed Solution

The Raw materials and landis is related to working capital.
Capital is one of the essential factors of production. It comprises two categories: physical and human capital. Physical capital includes the different types of input required at every stage. It consists of two categories as fixed and working capital. The working capital, such as raw materials and money in hand, is regularly used for the inflow and outflow. Natural materials, such as the yarn used by the weaver and the clay needed by the potter, And the money required to buy other necessary items and make payments. This type of capital is very much required to run a business or do farming. A person needs working capital to meet their daily expenses.

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