Question

distinguish fixed capital and working capital​

Answer 1

Fixed capital: This is money which is used to purchase assets that will remain permanently in the business and help it to make a profit.

Working capital: Working capital is that part of capital invested which is used for running the business such like money which is used to buy stock, pay expenses and finance credit.

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Answer 2

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

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Working capital is a financial metric which represents operating liquidity available to a business, organization, or other entity, including governmental entities. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital.

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