Question

why are the raw material and mony in hand categories as working capital and not fixed capital​

Answer 1

Answer:

(ii) Working Capital: Production requires a variety of raw materials. It requires money to make payments and buy other necessary items. Raw materials and money in hand are called working capital. Production requires a variety of raw materials such as the yarn used by the weaver and the clay used by the potter.

Answer 2

Production requires a variety of raw materials. It requires money to make payments and buy other necessary items. Raw materials and money in hand are called working capital. Production requires a variety of raw materials such as the yarn used by the weaver and the clay used by the potter.

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