Define circulating capital, fixed capital, vertical integration, and conglomerate. Explain the difference between them.

a) i) Circulating capital refers to capital that is used up or transformed in a single production cycle, such as raw materials and fuel. It is not durable and needs frequent replenishment. Fixed capital refers to durable capital goods that are used repeatedly over many production cycles, such as machinery, buildings, and tools. It is not consumed in a single use.

ii) Vertical integration is a strategy where a company expands its operations into different stages of the same production process, either backward (acquiring a supplier) or forward (acquiring a distributor). A conglomerate is a large corporation that owns a group of unrelated businesses operating in diverse industries, typically with no common production or marketing links.

b