Question

define fixed capital and working capital in four points

Answer 1

fixed capital gets used out in making something and for making more of such kind we need to buy it but working capital can be used for longer duration and it do not gets used up like tools and machinary .

Answer 2

"$\ \ \ \large \cal{ \pmb{ \colorbox{darkblue}{W ORKING \: \: \: \: CAPITAL}}}$"

WORKING CAPITAL is defined as the funds which are used in the day to day business operations of a company.

• The efficient management of working capital is important for both, the profitability and the financial health of the company.
• In layman’s term, every company needs a cash reserve to manage their daily running cost and that is known as the Working Capital.

Working capital is calculated as:

Working Capital = Current Assets - Current Liabilities

• Current Assets → Inventory, cash, and account receivables
• Current Liabilities → Account Payables And Short Term Loans