Question

What is the role of fixed capital & Working Capital in economic activity​

Answer 1

Answer:

Explanation:

Fixed capital plays a vital role in the establishment of business enterprises. It is required for acquiring fixed (tangible and intangible) assets, which is the preliminary requirement for starting a company. ... It is also needed for making improvements and expanding the existing set up of a business enterprise.Working capital, also known as net working capital (NWC), is the difference between a company's current assets, such as cash, accounts receivable (customers' unpaid bills), and inventories of raw materials and finished goods, and its current liabilities, such as accounts payable.