Question

differentiate between fixed capital and working capital

Answer 1

Fixed capital:1. Fixed capital is the inputs for farming which we do not have to buy again and again.
2. In fixed capital,not buying inputs again and again saves money.
Example: generators,computers,irrigation machines etc.
Working Capital : 1.Working capital is the inputs of farming which we have to buy again and again.
2. In working capital,buy again and again inputs spends money.
Example: Raw material like seeds and clay.

Answer 2

hi friend
here's your answer looking for

in order to understand the fixed capital and working capital let's first understand what is capital?

Capital :- it is one of the most important factor of production by which any process of production takes place.

it's of three types :-

1). Working capital :- working capital is the raw material and money in hand. it is one of the most important capital by which we can work out any process instantly.

2). fixed capital :- on those capitals which can be used in a production for many years and that are fixed on its place, is called as fixed capital.

example :- buildings, machines, tools etc.

3). Human capital :- as to put all these factors of production together there must be one more capital which can handle this all things. so this capital is known as the human capital and sometimes it is also known as entrepreneur.


hope you are satisfied with my answer