Question

Differentiate between Fixed capital and working capital.

Answer 1

Explanation:

fixed capital is the capital which can be used for many years.ex-machine,tool,etc

working capital is the capital which can be used once or for short period of time.ex-seeds,etc

Answer 2

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


Fixed Capital and Working Capital are the two types of capital which mainly differs, on account of their usage in the business i.e. if it is utilized to serve long term requirements, they are terms as fixed capital, while if it serves short term requirements, it is called as working capital.

Taking a glance, in this article will help you understand the difference between fixed capital and working capital, in detail

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