Question

what is working capital? how is it different from fixed capital

Answer 1

working capital deal with labour. but fixed capital deals with permanent equipment which are used in production..


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Answer 2

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• Fixed capital is the investments done by the business for accruing long-term benefits.
• Working capital is the daily requirement pumped into the business.
• Fixed capital is used to acquire non-current assets of the company.
• Working capital is used to acquire the current assets of the company.