What is the major difference between fixed capital and working capital?
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Explanation:
Fixed capital alludes to the amount of investment of company in long term assets. Working capital refers to the capital that is invested into the current assets of the organization. ... Working capital assets usually have more liquidity since they can promptly be changed over into cash.
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Answer:
Working capital Fixed capital
It has liquidity It has no liquidity
Serves short period of time. Serves long period of time.
Less than one accounting period. More than one accounting period.
Operational based. Strategy based.
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