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
Fixed capital and working capital are both vital to a small business. Fixed capital include the asset or investment needed to start a business, like property or equipment. Working capital is the cash or other liquid assets that a business uses to cover daily operations, like meeting payroll and paying bills.
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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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Answer:
Fixed capital and working capital are both vital to a small business. Fixed capital include the asset or investment needed to start a business, like property or equipment. Working capital is the cash or other liquid assets that a business uses to cover daily operations, like meeting payroll and paying bills.