mention the difference between fixed capital and working capital
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Explanation:
fixed capital is also called physical capital they helpful for the process of agriculture eg : tools. working capital means income that is helpful for agriculture
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Answer:
- Fixed capital supports the business indirectly. Working capital supports the business directly.
- Fixed capital is invested in long-term assets. Working capital is invested in current assets.
- Fixed capital is required before the business starts. Working capital is required after the business gets started.
- Fixed capital can’t be u capital serves the business for a very short period of time.
- The orientation of fixed capital is strategic. The orientation of working capital is operational.
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