Question

Differntiate between working capital and fixed capital with example

Answer 1

Fixed capital : Tools,machines,buildings can be used in n production over many years and are called fixed capital...

Working capital : Raw materials and money in hand are called working capital.Unlike the tools,machines,buildings,these are used up in a production..

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Answer 2

Answer:The difference btween working and fixed capital are :

Explanation: Working capital - Production requires a variety of raw materials such as the yarn used by the weaver and the clay used by the potter . Also, some money is always required during production to make payments and buy other items. Raw materials and money in hand are called “working capital”.

Fixed capital- Tools and machines range from very simple tools such as farmer's plough to sophsticated machines such as generators , turbines , computers, etc. Tools ,machines , buildings can be used in production over many years , and are called fixed capital.