Sunk capital is a type of capital that is employed in one can particular project. Whereas floating capital is the amount that can be employed in different projects.
Sunk capital remains in one place and hence is also known as specialized capital, whereas floating capital is known as free capital as it can be used in different projects.
An example of sunk capital is an ice-cream-making machine, whereas an example of a floating capital will be wood.
Final Answer: Sunk capital is employed in one only project, is of single use. Whereas floating capital has alternative uses.