(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.