Differentiate between Floating and Sunk capital. Give an example for e – InterviewSolution

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1.

Differentiate between Floating and Sunk capital. Give an example for each.

Answer»

Sunk Capital: It is that kind of capital, which can be used to produce only one type of commodity or service.

For example, an ice factory.

Floating Capital: It is that category of capital, in which all items can be put to alternate uses.

For example: money, fuels etc.

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