Question

What are the factors of Production?
How is Fixed capital different from working Capital?​

Answer 1

Answer:

Fixed capital investments include durable goods, which will remain in the business for more than one accounting period. On the other hand, Working capital comprises of short-term assets and liabilities of the business. Fixed capital is relatively illiquid because it cannot be converted into cash easily.

Answer 2

Answer:

The primary difference between fixed capital and working capital is that Fixed Capital is the capital which is invested by the company in procuring the fixed assets required for the working of the business whereas working capital is the capital which is required by the company for the purpose of financing its day to ...