Write the difference between fixed capital and working capital with examples.
Answers
Answer:
Those materials which can be used in production over many years are called FIXED CAPITAL . for example, Tools, machines and buildings range from very simple tools such as a farmer's plough to sophisticated machines such as generators, turbines
working capital is the capital which are required during production processes. It includes raw material and money in hand
Explanation:
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.
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