Question

Differentiate between fixed capital and working capital.
(any 3 point of difference is required)

Answer 1

Answer:

Fixed CapitalWorking CapitalDefinitionInvesting capital in the long term assets of an enterprise.Working capital is the capital invested in the current assets of an enterprise.Types of assets acquiredUsed to acquire non-current assets for the companyUsed to acquire current assets for the companyLiquidityFixed capital is not at all liquidWorking capital is highly liquidConversion to cashNot possible to convert into cashCan be converted into cashObjective servedServes strategy oriented objectives Serves operational objectives