Difference between working capital and physical capital
Answers
◆Working capital:Working capital is a financial metric which represents operating liquidity available to a business, organisation or other entity, including governmental entities.
◆Physical capital:physical capital or just capital is a factor of production, consisting of machinery, buildings, computers, and the like.
The primary function of the financial manager is to ensure availability of finance, to fulfill different purposes such as initial promotion, fixed capital, and working capital. Fixed Capital refers to the capital, which is invested in procuring fixed assets for business. On the other hand, working capital represents the amount of money utilized for financing day to day business operations. It is required to support the proper functioning of the company’s business operations