Question

What is mean by working capital how is it different from 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

working capital: Our production requires a variety of raw material such yarn used by the weaver and the clay used with a Potter, also some money is always required during production to make payments and by other necessary items.Raw materials and money in hand are working capital.


Fixed capital:The tools and machines that are required during production which can be used for many year, and which are permanent and cant be changed, they are called fixed capital.


hope this may help u