Question

please answer its urgent...
Distinguish between working capital and fixed capital

Answer 1

Fixed capital investments represent the acquisition and maintenance of long-term assets. A fixed capital investment can be tangible asset, such as a building, or an intangible asset, such as an intellectual property. Working capital refers to the deployment of financial resources in the day-to-day business operations.

Answer 2

f/c is used to buy fixed assets like land and building. w/c is used to carry day to day operations


f/c is consists of land, building, tools, machines  etc. w/c is consists of cash, marketable securities, account receivable etc.


f/c includes long term financial decisions. w/c includes short term  financial decisions