Question

Differentiate between the Fixed Capital Requirement and Working Capital Requirement on the following basis:
(a) Meaning and Scope (b) Nature
(c) Duration (d) Sources of Procurement

Answer 1

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Answer 2

Answer:

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.

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