1.

Differentiate between Fixed Capital and Working Capital.

Answer»
Fixed CapitalWorking Capital
1. Fixed capital means the investments done by the business for acquiring long term benefits.1. Working capital means the funds required for day to day operations of the business.
2. It is used to acquire non-current assets of the business.2. It is used to acquire current assets of the business.
3. This capital cannot be converted into cash immediately.3. This capital can be converted into cash immediately.


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