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प्रश्न
Distinguish between Fixed capital and Working capital.
उत्तर
| Points | Fixed capital | Working capital | |
| 1. | Meaning | Fixed capital refers to any kind of physical capital. i.e., fixed assets. | Working capital refers to current assets minus current liabilities. |
| 2. | Nature | It stays in the business almost permanently. | Working capital is circulating capital. It keeps changing. |
| 3. | Purpose | It is invested in fixed assets such as land, buildings, equipments, etc. | Working capital is invested in short-term assets such as cash, accounts receivable, inventory, etc. |
| 4. | Sources | Fixed capital funding can come from selling shares, debentures, bonds, long-term loans, etc. | Working capital can be funded with short-term loans, deposits, trade credit, etc. |
| 5. | Objectives of investment | Investors invest money in fixed capital, hoping to make a future profit. | Investors invest money in working capital for getting immediate returns. |
| 6. | Risk Involved | Investment in fixed capital implies more risk. | Investment in working capital is less risky. |
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संबंधित प्रश्न
Write a word or a term or a phrase which can substitute the following statement.
Capital needed to acquire fixed assets which are used for longer period of time.
Write a word or a term or a phrase which can substitute the following statement.
The sum of current assets.
State whether the following statement is true or false.
A firm with large scale operations will require more working capital.
Liberal credit policy creates a problem of bad debts.
Explain the following term/concept.
Fixed capital
Explain the following term/concept.
Working capital
Justify the following statement.
There are various factors affecting the requirement of working capital.
Answer the following question.
Discuss the factors determining working capital requirement.
Explain the following term/concept:
Production Cycle
Justify the following statement.
The nature of business affects the working capital requirement.
Distinguish between Fixed Capital and Working Capital.
Distinguish between Fixed Capital and Working Capital.
Distinguish between the following.
Fixed Capital and Working Capital.
Liberal credit policy creates a problem of bad debts.
Liberal credit policy creates a problem of bad debts.
Distinguish between the following.
Fixed Capital and Working Capital
Liberal credit policy creates a problem of bad debts.
Distinguish between Fixed Capital and Working Capital.
Distinguish between the following.
Fixed Capital and Working Capital.
