Treatment of farm animals
B5.135 Stock valuation—general principles
In The Wealth of Nations, Adam Smith described fixed capital as that which an owner turns to profit by keeping it in his possession, and circulating capital as that from which he makes a profit, by parting with it, and letting it change masters. It is in that sense that circulating capital is said to 'circulate'1.
A farmer's land, buildings and plant clearly represent his fixed capital, permanently retained. His produce, whether it consists of crops, wool, fruit or milk equally clearly represents circulating capital, because it is produced to be sold
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