The difference between fixed capital and working capital is as follows:

a) Purpose: Fixed capital is used to buy fixed assets like land and building whereas Working capital is used to carry out day to day operations. 

b) Assets included: Fixed capital consists of land, building, tools, machines etc. whereas Working capital consists of cash, marketable securities, accounts receivable, stock etc. 

c) Time period: Fixed capital includes long term financial decisions whereas Working capital includes short term financing decisions. 

d) Activities: Fixed capital is mainly required for operational activities whereas Working capital is required for trading activities.

e) Calculation: Fixed capital is calculated by deducting long term liabilities from total fixed assets whereas working capital is calculated by deducting current liabilities from current assets.

Fixed capital refers to the capital which is used for the purchase of fixed assets, such as land, building, machinery etc. Managing fixed capital is related to investment decision and it is also called capital budgeting. The capital budgeting decision affects the growth and profitability of the company.

Following factors are to be considered before determining its requirement:

1. Scale of operations: There is a direct link between the scale of business and fixed capital. Larger business needs more fixed capital as compared to the small organizations.

2. Nature of Business: If a firm is a manufacturing fir, it requires to purchase fixed assets for the production process. It needs investment in fixed assets, so require more fixed capital. Similarly if it is a Trading firm where the finished goods are only traded i.e. purchased and sold, it needs less fixed capital.

3. Choice of technique: The Manufacturing firm using the modern, latest technology machines has to invest more funds in the fixed assets, so they require more fixed capital. On the other hand, firms using the traditional method of production where the task is performed manually by the labourers, it requires less fixed capital.

4. Diversification: There are few firms and organizations who deal in a single product. These investments in fixed assets is low, whereas the firms dealing in number of products (Diversification) requires more investment in purchasing different fixed assets, it requires more fixed capital.

5. Financing alternatives: If the manufacturing firm actually buys the assets and blocks huge funds in the fixed assets, it requires more fixed capital.