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(ECONOMICS) the capital that a business sells in order to make money. The obvious example is the inventory of a [convenience store]; in this case, the circulating capital is the [merchandise], and the fixed capital includes the cash register, the display racks, and so on. In other cases, the circulating capital consists of raw materials or supplies; for example, a mechanic has [transmission] fluid or air filters, while a dress maker has muslin and thread.
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