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eMusic Study Pack • Commerce
Student
📖 Comprehensive Note
Capital refers to all man-made wealth, tools and assets used in producing goods and services. Capital helps every stage of production by supporting workers, speeding processes and increasing output. There are two major types of capital: Fixed capital and Working capital.
🎤 Lyrics + Audio
Chorus
Capital is all the man-made wealth
Used to produce more goods and services.
Capital is all the man-made tools
That support every stage of production.
Verse 1
Fixed capital is man-made assets
Used repeatedly in production.
It lasts for many years
Without being completely used up.
Examples include buildings, machines,
Tools, tractors and factory equipment.
They remain in the business for long,
Helping work continue every day.
Chorus
Capital is all the man-made wealth
Used to produce more goods and services.
Capital is all the man-made tools
That support every stage of production.
Verse 2
Working capital is the type of capital
That is used up during production.
It changes form or gets consumed
Within a short period of time.
Examples are raw materials, fuel,
Cash for daily transactions and stock.
They move from hand to hand quickly,
Keeping production running smoothly.
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📊 Line-by-Line Study Guide
| Lyric Line | Explanation |
|---|---|
| Capital is all the man-made wealth | Capital is human-created items used for production. |
| Used repeatedly in production | Fixed capital lasts long and is reused. |
| Examples include buildings, machines | These are durable fixed capital items. |
| Working capital is used up | It gets consumed during production. |
| Examples are raw materials, fuel | They are short-term and change form quickly. |
💡 Mnemonic
Capital (C.A.P.I.T.A.L)
- C – Creates wealth (man-made resources)
- A – Assets used in production
- P – Produces goods & services
- I – Involves tools and machines
- T – Time-tested (Fixed capital lasts long)
- A – Always consumed (Working capital used up quickly)
- L – Labor support (helps workers produce efficiently)
Fixed Capital (F.I.X.E.D)
- F – Factories and buildings
- I – Instruments (machines & tools)
- X – eXpensive & long-term
- E – Equipment
- D – Durable (used repeatedly)
Working Capital (W.O.R.K)
- W – Weekly/day-to-day use
- O – On-hand materials (raw materials, fuel, cash)
- R – Rapidly consumed
- K – Keeps production running
❓ Quiz
1. Capital refers to?
2. Fixed capital is?
3. Example of fixed capital?
4. Working capital is?
5. Example of working capital?
🃏 Flashcards
Q1: What is capital?
Man-made assets for production
Q2: Fixed capital lasts?
Many years
Q3: Example of fixed capital?
Buildings and machines
Q4: Working capital is?
Used up in production
Q5: Example of working capital?
Fuel, cash, raw materials
🎯 Drag & Drop
Match the item to its type:
Fixed Capital
Working Capital
Machines
Buildings
Fuel
Raw materials
📌 Summary
- Capital = man-made tools and wealth used in production.
- Fixed capital lasts for years and is reused.
- Working capital gets consumed quickly.
- Examples: Machines (fixed), Fuel (working).