The money Bert uses to build inventory for the upcoming Christmas season would be classified as ________ capital.

Question

Quizplus · Accepted Answer

The money Bert is using for building inventory is needed for the day-to-day operations of his business and is therefore classified as working capital. Working capital refers to the amount of cash a business has on hand to cover daily expenses such as payroll, rent, and inventory. Growth capital, on the other hand, is used to fund business growth and expansion, while fixed capital is used for long-term investments such as property, equipment, and vehicles. Efficiency capital is not a commonly used term in finance.

The Money Bert Uses to Build Inventory for the Upcoming