Get Started

TOPIC: CAPITAL

Epic Motion Inc > Blog > Uncategorized > TOPIC: CAPITAL


CONTENT

  • DEFINITION
  • TYPES
  • SOURCES
  • CHARACTERISTICS
  • USES
    Capital includes all man-made productive assets which are used in production. It in
    most cases is referred to as money used to start up and keep running a farming
    venture.It is broadly divided into fixed ad working (variable) capital.
    TYPES OF CAPITAL
  1. Fixed Capital: these are capital or assets purchased for continuous use in
    production. In other words, these are items or materials which are not used up
    during production. E.g Farm buildings, motor vehicles, farm tools and
    implements, tractors, incubators, irrigation equipment, etc.
  2. Working or Variable Capital: these are capital or assets which are used up during
    the process of production. Examples include: Water, feeds, drugs, cash in hand,
    vaccines, litters, fertilizers, seeds, chemicals, etc.
    SOURCES OF CAPITAL
    Avenue from which a farmer can get money to start or ensure smooth running of a farming
    venture includes:
  3. Personal savings
  4. Gifts from friends
  5. Grants or aid from government and other organisations
  6. Loan from friends
  7. Loan from family members
  8. Loan from banks and other financial institutions
  9. Loan from government.
    CHARACTERISTICS OF CAPITAL
  10. It can depreciate or appreciate.
  11. The reward for capital is interest.
    EVALUATION
  12. What is capital?
  13. Mention two characteristics of capital.
    IMPORTANCE OF CAPITAL IN AGRICULTURAL ENTERPRISE
  14. It is used to establish farm enterprise
  15. Working capital is used in the day-to-day running of the farm enterprise.
  16. Working capital is used for paying wages.
  17. Working capital is used for the purchase of farm inputs, maintenance services
    on the farm, and feeding of livestock,
  18. Fixed capital in form of immovable houses and farmsteads provide shelter for
    farm operations
  19. Fixed capital in form of machinery provides farm power for farm operations.
  20. Fixed capital is used to generate more funds
  21. Fixed capital is used to facilitate farm expansion or increase farm size.
    GENERAL EVALUATION
  22. Define capital.
  23. List the types of capital you know.
  24. Mention two characteristics of capital.
  25. State five importance of capital in an agricultural enterprise.
    READING ASSIGNMENT
    Essential agricultural science for senior secondary school by O. A. Iwenapg:350 – 351.
    WEEKEND ASSIGNMENT
  26. Working capital is used for the following except A. purchase of farm inputs
    B. maintenance services on the farm C. To achieve the various stages of
    agricultural production D. feeding of livestock.
  27. The following are variable capital except A. vaccines B. fertilizers C. Incubators
    D. chemicals.
  28. Materials that are not used up during production are known as __ A. Working
    capital B. Fixed capital C. Land capital D. Farm capital.
  29. __ is the reward of capital. A. Wages B. Rent C. Interest D. Salary.
  30. Fixed capital is ____A. Moveable B. Irreplaceable C. Immovable D. Replaceable.
    THEORY
  31. What is Capital?
  32. State five importance of Capital in Agricultural Enterprise