Question

Distinguish between working capital and fixed capital.

Answer 1

working capital are the tools and the money in hand...

fixed capital is the long time investment made on a particular thing...

Answer 2

1.fixed capital used to buy fixed assets/working capitals is used to carry out day to day operations


2.fixed capitals consists of land, capital, tool, machines, etc. / working capitals consists of cash, marketable securities, account receivable , stocks etc.


3.fixed capital include long term financial decisions/ working capital include short tern  financial decisions 


4.fixed capital is mainly required for operational activities /working capital is required for trading activities