Question

what do you meant by fixed capital and working capital?​

Answer 1

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 ...

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Answer 2

Answer:

Fixed capital : Tools and machines range from a plough to a tractor and sophisticated machines like generators, turbines, computers, etc. The tools, machines, buildings which can be used in production over many years are called fixed capital.

For eg. Land, Building And Machines

Working capital : Production requires a variety of raw materials. It requires money to make payments and buy other necessary items. Raw materials and money in hand are called working capital. Unlike tools and machines, these are used up in production.

For eg, Yarn required by a weaver; clay used by a potter.