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Fixed capital

Fixed capital Definition

Fixed capital is a concept from economics, introduced by David Ricardo. It refers to any kind of real or physical capital that is not used up in the production of a product and is also not easily moved into the production of a new product. It is contrasted with circulating capital.

A business executive who invests in or accumulates fixed capital is tying up money in a fixed form in hopes of making a future profit. Thus, this investment is risky.





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