Equipments like Hand Tools, Personal Computer, Fax Machines, etc. are:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Capital items
Option (1) Capital items — Correct. Capital items are industrial goods used to produce the finished goods; they do not become part of them. They are of two kinds: installations such as elevators and mainframe computers, and equipment such as hand tools, personal computers and fax machines.
Option (2) Material and parts — Incorrect. These enter the finished product itself, such as raw cotton, glass, tyres or batteries.
Option (3) Supplies and Business Services — Incorrect. These are short-lasting goods and services that help run the business, such as lubricants, stationery, repair work or legal advice.
Option (4) Perishable items — Incorrect. This is not a class of industrial products. The three classes are materials and parts, capital items, and supplies and business services.
NCERT (2026-27 Edition): “(ii) Capital Items: These are such goods that are used in the production of finished goods. These include: (a) installations like elevators, mainframe Computers, and (b) equipments like Hand Tools, Personal Computer, Fax Machines, etc.” |