Question

difference between working capital and fixed capital

Answer 1

Working capital - The capital in which is working ex - money , raw materials etc...

Fixed capital- The capital which is fixed ex- house, building, computer, chair etc...

Answer 2

In economic terms the fixed and the working capital have various differences.
the differences between them are in listed below :-

WORKING CAPITAL

working capital refers to the capital which is required during the production.
this is a form of capital which gets utilised after one time production and is required on constant basis during any manufacture or production.

working capital gets you stopped after the production. hence, it is not static in fact it's a rolling capital.

example - money, raw materials, etc


FIXED CAPITAL

fixed capital is a form of capital which remains fixed during the production.
this means that once the product is bought then it can be used over and over for production.

this form of capital is required one time investment and can be further utilised whenever required.

this capital does not get used up after one time production and is used for constant production and manufacture.

example - land, water, tools, machinery, etc





this weather differences between the fixed capital and working capital.
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