Concept:Circulating capital is the capital used to cover the day-to-day running costs of production.
Explanation:Production activities require cash and materials that are regularly consumed or converted.
Such capital includes raw materials, cash for wages, fuel, and other operating expenses.
These items change form or are used up within a single production cycle.
Fixed capital, in contrast, includes long-term assets like buildings and machinery.
Thus, the capital needed for everyday production operations is called circulating capital.
Answer:C. Circulating capital