Write two differences between fixed Capital and Working Capital.
he difference between working capital (w/c) and fixed capital (f/c) is as follows:
i) f/c is used 2 buy fixed assets like land and building.w/c is used to carry out day to day operations.
ii) f/c consists of land ,building,tools,machines etc.w/c consists of cash,marketable securities,accounts receivable,stock etc.
iii)f/c includes long term financial decisions.w/c includes short term financing decisions.
iv) f/c is mainly required for operational activities.w/c is required for trading activities.
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