Question

Difference between working capital and physical capital

Answer 1

Explanation:

Just do this

1)Scroll upward and you will able to see the answer

Answer 2

Concept:

A working capital investment made in the current assets of the organisation.

A physical capital is the investment made in the long term assets of the organisation.

Explanation:

Below are a few differences between working capital and physical capital-

• Liquidity -Working capital is highly liquid while the Physical capital is not at all liquid.

• Objective- Working capital serves the operational objective while the Physical capital serves the Strategy oriented objectives.

• Conversion to cash- Working capital being highly liquid can be easily converted to cash while the Physical Capital cant be easily converted to cash.

Hence we can conclude that, Working capital includes investment in Stock etc while the Physical Capital includes the investment in the machines, buildings etc.

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