Differentiate between fixed Capital and cirulating capital.
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The primary difference between fixed capital and working capital is that Fixed Capital is the capital which is invested by the company in procuring the fixed assets required for the working of the business whereas working capital is the capital which is required by the company for the purpose of financing its day to day operations.
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Fixed capital is the money invested for longer than one production cycle (typically one year). Circulating capital typically includes current assets, while fixed capital can include fixed and long-term assets. Economist Karl Marx theorizes that fixed capital is also circulating, the circulation cycle is just longer.
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