Difference between fixed capital and working capital.
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Working Capital refers to the capital, which is used to perform day to day business operations. Fixed capital investments include durable goods, which will remain in thebusiness for more than one accounting period. On the other hand, Working capitalcomprises of short-term assets and liabilities of the business.
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Answer:
Fixed capital investments represent the acquisition and maintenance of long-term assets. A fixed capital investment can be tangible asset, such as a building, or an intangible asset, such as an intellectual property.
Working capital refers to the deployment of financial resources in the day-to-day business operations...
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