5 differences between fixed and working capital.
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Explanation:
Fixed capital is the investments done by the business for accruing long-term benefits. Working capital is the daily requirement pumped into the business. Fixed capital is used to acquire non-current assets of the company. Working capital is used to acquire the current assets of the company.
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Answer:
Difference between working capital and fixed capital.
- Working capital Fixed capital
- It has liquidity It has no liquidity.
- Serves short period of time. Serves long period of time.
- Less than one accounting period. More than one accounting period.
- Operational based. Strategy based.
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