UP Board Class 10 Commerce Chapter 24 Capital: That means, Classification and Traits

UP Board  Class 10 Commerce Chapter 24 Capital: That means, Classification and Traits

Capital: That means, Classification and Traits Goal Sort Questions (1 Mark)

Query 1.
All capital is the product of (UP 2017)
(a) Funding
(b) Saving
(c) Manufacturing
(d) None of those
Reply:
(b) Saving

Query 2.
By the time period capital formation we imply:
(a) Fastened Property
(b) Capital Formation
(c) Funding
(d) None of those
Reply:
(b) Capital Formation

Query 3.
……… and compelled financial savings represent the 2 sorts of financial savings.
(a) Voluntary
(b) Non-voluntary
(c) Both (a) or (b)
(d) none of those
Reply:
(a) Voluntary

Query 4.
…….. and ………. are important for making additions to the inventory of capital.
(a) Saving, Capital
(b) Capital, Funding
(c) Saving, Funding
(d) None of those
Reply:
(c) Saving, Funding

Query 5.
Below-developed nations are characterised by ……….. charge of capital formation.
(a) Excessive
(b) Low
(c) Both (a) or (b)
(d) None of those
Reply:
(b) Low

Capital: That means, Classification and Traits Particular Reply Sort Questions (1 Mark)

Query 1.
Give the title of any two sorts of capital.
Reply:
Fastened and circulating (UPBoardSolutions.com) capital.

Query 2.
Which time period is used within the service of cash or wealth or property?
Reply:
Capital.

Query 3.
What are the first components of manufacturing?
Reply:
Land and Labour.

Capital: That means, Classification and Traits Very Quick Reply Sort Questions (2 Marks)

Query 1.
Outline Capital.
Reply:
In accordance with Marshall, “Capital consists of these sorts of wealth aside from free items and nature which yield earnings.”
In accordance with Thomas, “Capital is that a part of the (UPBoardSolutions.com) wealth of people and communities, aside from land, which is used within the manufacturing of additional wealth.”

Query 2.
Give any two features of capital.
Reply:
The next are the features of capital:

  • Capital makes the availability of instruments and implements to employees for productive functions.
  • Part of capital is spent on buying uncooked supplies.

Capital: That means, Classification and Traits Quick Reply Sort Questions (Four Marks)

Query 1.
What’s the significance of capital in manufacturing?
Reply:
Capital has been a vital issue of manufacturing even in earlier levels of human improvement. Within the searching, stage man used some implements to kill wild animals for meals. These implements had been his capital. Since then capital in some kind or the opposite has performed a major function within the financial improvement of society. Below capitalism, capital is most (UPBoardSolutions.com) important. It’s equally necessary underneath communism. Although capital will not be a main issue of manufacturing but its significance is as nice as that of any main issue of manufacturing equivalent to land as labour.

Query 2.
What do you imply by Gross Capital Formation and Internet Capital Formation? (UP 2016)
Reply:
Each producing unit has to make provisions for the depreciation of the plant and equipment. So, it retains apart part of its earnings for changing the nice and cozy out equipment and plant. Nevertheless it generally retains one other a part of its earnings away for getting new equipment and gear when it feels a must develop itself. So each producing unit not solely retains its capital intact but it surely tries to develop its productive capability via making additions to additional capital in future. So, the gross capital formation induces two issues:

  • Sustaining capital intact.
  • Making additional additions to capital gear to develop the amount of manufacturing.

Whereas web capital formation consists of just one factor, i.e., making additional Addition to capital gear.

Query 3.
Make out the primary variations between Fastened and Circulating Capital. (UP 2009, 17)
Reply:
Distinction between Fastened Capital and Circulating Capital:
Fastened Capital: Fastened Capital exists in a sturdy form, renders steady service for a few years and its return is unfold over a higher size of time. Fastened Capital consists of these items that are used time and again for additional manufacturing. Their utility doesn’t get exhausted in a single-use. For instance, equipment is utilized in a manufacturing unit for a number of years till it turns into (UPBoardSolutions.com) ineffective. Equally, manufacturing unit premises are mounted capital as a result of they’re used for a number of years. Examples of mounted capital are equipment, plant, instruments, implements, constructing and different sturdy items.

Circulating Capital: Circulating capital refers to these items which can be utilized solely as soon as in manufacturing or these items which can’t be utilized in manufacturing again and again. They’re single-use producer items. Examples of circulating capital are uncooked supplies, gasoline and items in course of, cash paid on wages to employees and so forth.

Query 4.
Draw a transparent line of demarcation between Capital and Wealth. Point out the purpose of variations between Land and Capital. (UP 2009)
Reply:
Distinction between Capital and Wealth: Capital is that a part of the wealth that’s used for the manufacturing of additional wealth. Thus, “all wealth will not be capital, although all capital is wealth.”

Professor Benham and Fisher don’t discover any distinction between wealth and capital as a result of each are used for manufacturing and consumption. In accordance with these students, all wealth is capital as a result of the direct impact of products is on manufacturing of wealth. The one distinction lies in use. If, for instance, a automobile is purchased for excursions and pleasure, it isn’t capital, but when it (UPBoardSolutions.com) is purchased for doing enterprise, it’s capital.
Variations between Land and Capital

LandCapital
1. Land is a free present of nature.1. Capital is fashioned via human efforts, i.e., it’s a ‘produced’ agent of manufacturing.
2. Land lacks mobility.2. Capital is pretty cell.
3. The provision of land is mounted and restricted within the space. Within the occasion of fluctuations in hire, its provide can’t be elevated or withdrawn.3. Provide of capital might be elevated or decreased with human efforts.
4. Hire of land varies.4. Revenue from capital is kind of uniform.
5. Land is a everlasting issue of manufacturing and indestructible. Land doesn’t depreciate or put on out.5. Capital is perishable and turns into utterly worn out and the identical must be changed.

Query 5.
Distinguish between wealth and capital. Clarify the significance of capital in manufacturing. (UP 2019)
Reply:
Distinction between capital and wealth
Capital is part of wealth which is used for the manufacturing of additional wealth. Thus, “All wealth will not be capital, Although all capital is wealth”.

Professor Benham and Fisher don’t discover any distinction between wealth and capital as a result of each are used for manufacturing and consumption. In accordance with these students, all wealth is capital as a result of the direct impact of products is on manufacturing of wealth. The one distinction lies in use if for instance. A automobile is purchased for excursions and pleasure. It’s not capital however whether it is purchased for doing enterprise it’s capital.

Significance of capital is manufacturing within the fashionable massive scale manufacturing system. Capital is a vital issue of manufacturing, so necessary that different components of manufacturing manpower assets of a rustic can’t be utilised with out capital nor can the pure assets be exploited for using man.

Capital has been a vital issue of manufacturing even within the earlier stage of human improvement within the haunting stage man used some implements to kill wild animals for meals. These implements had been his capital. Since then capital in some kind or the opposite has performed a major function within the financial improvement of society. Below capitalism capital is most (UPBoardSolutions.com) important it’s equally necessary underneath communism. Although capital will not be a main issue of manufacturing. But its significance is as nice as that of any main issue of manufacturing equivalent to land or labour.

Capital: That means, Classification and Traits Lengthy Reply Sort Questions (Eight Marks)

Query 1.
Outline Capital and write its traits.
Or
Make clear the which means of Capital. Describe the significance of capital within the enterprise. (UP 2012)
Reply:
That means of Capital: Capital typically means cash, however in Economics, the time period capital implies that a part of man-made wealth which is used for additional manufacturing of wealth. Within the phrases of Marshall, “Capital consists of all these sorts of wealth aside from free items of nature, which yield earnings.”

Traits of Capital: The principle traits of capital are as follows:
1. Capital is man-made issue of manufacturing. Below capital, solely man-made components might be included equivalent to machines, buildings and so forth. Quite the opposite, the items from nature equivalent to land, local weather and so forth. can’t be thought of as capital.

2. All wealth can’t be counted as capital, however solely that a part of the wealth which is useful in additional manufacturing is counted as capital.

3. No manufacturing is feasible with out capital. However capital doesn’t produce something by itself. Manufacturing is carried out with the assistance of capital and it’s rightly stated that capital is an inactive issue of manufacturing.

4. The capital includes the factor of time. The capital renders its companies for a time frame. That is the explanation why the cost of capital is measured by way of a selected charge, per cent and per 12 months.

5. The capital is subjected to depreciation. The capital used within the type of equipment (UPBoardSolutions.com) attributable to fixed use suffers put on and tear. Due to this fact, this must be changed.

6. Capital possesses the standard of mobility. Capital is essentially the most cell issue of manufacturing. The capitalist can carry his capital anyplace he likes with none issue.

7. Capital has the traits of elasticity. Provide of capital might be elevated or decreased relying upon the scenario.

8. Manufacturing is feasible solely attributable to using capital. The applying of capital (UPBoardSolutions.com) will increase the effectivity of labour and productive energy of all of the components of manufacturing with which it’s mixed and used.

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