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Seeds, fuel and raw materials, which perform their function in a single use and are not available for further use, are examples of:
Asingle-use circulating capital
Bdurable fixed capital
Csociety-owned social capital
Dskill-based human capital
Answer & Solution
Correct answer: A. single-use circulating capital
1. Circulating capital performs its function in production in a single use and is then used up.
2. Seeds, fuel and raw materials are consumed in one round of production, so they fit this category.
3. Hence the answer is circulating capital.
4. Fixed capital (tools, machines) gives a series of services over time, social capital is owned by society, and human capital is skill and ability, so none of those fit.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 3 Unit I "Theory of Production", p.6_
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