Question

difference between fixed capital and working capital​

Answer 1

$\fbox\red{ Fixed Capital }$

Fixed Capital refers to the capital investment made in the long term assets of the company. It is a compulsory requirement of a firm during its initial stage, i.e. to commence a business or to conduct the existing business.

$\fbox\pink{ Working Capital}$

Working capital (TWC) is the difference between current assets and current liabilities related to the everyday operations of a company. TWC is usually expressed in % of sales.

Answer 2

Answer:

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Fixed Capital Working Capital

Definition

1. Investing capital in the long term assets of an enterprise.
2. Working capital is the capital invested in the current assets of an enterprise
3. Types of assets acquiredUsed to acquire non-current assets for the company Used to acquire current assets for the company
4. Liquidity
5. Fixed capital is not at all liquid Working capital is highly liquid
6. Conversion to cash
7. Not possible to convert into cash Can be converted into cash
8. Objective served