Economy, asked by Anonymous, 1 year ago

What is the difference between Fixed Capital and Working Capital?
Need easy to understand points.
Thanks in advance!

Answers

Answered by girijapatra05
2

The difference between fixed capital and working capital can be drawn clearly on the following grounds: Fixed capital is defined as the part of the total capital of the enterprise which is invested in long-term assets. Working Capital refers to the capital, which is used to perform day to day business operations


aaliyah2994: examples of fixed capitals are machines such as turbines, computers etc.
aaliyah2994: you r welcome
aaliyah2994: yes
aaliyah2994: yes...read the chapter you will understand everything
aaliyah2994: ur welcome
Answered by pinky221122
2
Hey mate.....
Here is your answer......

Working Capital refers to the capital, which is used to perform day to day business operations. 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.

The primary function of the financial manager is to ensure availability of finance, to fulfill different purposes such as initial promotion, fixed capital, and working capital. Fixed Capital refers to the capital, which is invested in procuring fixed assets for business. On the other hand, working capital represents the amount of money utilized for financing day to day business operations. It is required to support the proper functioning of the company’s business operations.

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pinky221122: no it's not
pinky221122: plz read more
pinky221122: U will understand that it is different
pinky221122: ok
pinky221122: oh ok
pinky221122: and thanks for marking as brainliest
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