Differentiate between working capital and fixed capital – InterviewSolution

InterviewSolution

1.	Differentiate between working capital and fixed capital
Answer» Fixed capital investments represent the acquisition and MAINTENANCE of long-term assets. A fixed capital investment can be tangible asset, such as a building, or an intangible asset, such as an intellectual PROPERTY. Working capital REFERS to the deployment of financial RESOURCES in the day-to-day BUSINESS operations.

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