Question

Q1 Distinguish between fixed capital and working capital with suitable examples

Answer 1

Answer:

Fixed Capital: the money which is invested to buy assets like machines buildings tools etc.. is called fixed capital.. it is also called as physical capital.

Examples: Machines like generators, motors computers etc

Working Capital: the money which is invested to buy raw materials to produce a goods by using the machines is called working capital..

examples: yarn used by Weaver, limestone for cement