Differentiate between fixed capital and working capital with examples.

Question

Difference between Fixed Capital and Working Capital:Fixed CapitalWorking Capital(i) It is that capital which can be use...

Accepted Answer

Difference between Fixed Capital and Working Capital:Fixed CapitalWorking Capital(i) It is that capital which can be use...

Fixed Capital	Working Capital
(i) It is that capital which can be used in production for many years.	(i) It is used up in the process of production.
(ii) Buildings, heavy examples of machines are fixed capital.	(ii) Cotton yarn, clay, seeds are the examples of working capital.