Question

differentiate between fixed capital and working capital .state any Four Points

Answer 1

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.Fixed Capital refers to the capital, which is invested in procuring fixed assets for business. On the other hand, working capitalrepresents 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.

Answer 2

fixed capital is money like machines and tools and building.
working capital is the money given to labours ,and money for buying raw material