Question

differentiate between working capital and fixed capital with an example​

Answer 1

Answer:

1. working capital- in which we have to spend money regularly.

Eg- labour

2. fixed capital - in which we will spend money once and it will take a long time to spend money on that ! just for repairing only !!!!

Eg- building , Machine

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Answer 2

Answer:

Tools machines buildings range from very simple tools such as a farmers plough to sophisticated machines such as generators, turbines, computers, etc. Tools, machines, buildings can be used in production over many years, and are called fixed capital .

working capital

Production requires a variety of raw material such as the the yarn used by the Weaver and clay used by the Potter.

Also ,some money is always required during production to make payments and by other necessary items. Raw materials and money in hand are called working capital.