Question

Differential between fixed capital, working capital,human capital

Answer 1

Fixed Capital and working capital comes under Physical Capital

1. Physical Capital
The capital that can be used even after the production process is complete (meaning for many years) is know as Fixed Capital. Ex:Machines

Working Capital
The capital that gets used up in the production process is know as Working Capital. Ex: Money, Labour etc.

Human Capital
The knowledge and enterprise of human beings to put together the other factors of production is known as human capital

Answer 2

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Working Capital is the funds which are used in the day to day business operations of a company or to manage their daily running cost.

Working Capital = Current Assets - Current Liabilities

Current Assets → Inventory, cash, and account receivables

Current Liabilities → Account Payables And Short Term Loans