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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
Select the correct answer from the options given below and rewrite the statement.
______ refers to the excess of current assets over current liabilities.
Select the correct answer from the options given below and rewrite the statement.
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Financial institutions and banks cater to the working capital requirement of business.
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Fixed capital
Explain the following term/concept.
Working capital
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Discuss the factors determining working capital requirement.
______ capital is used to carry out day-to-day business activities.
Explain the following term/concept in detail:
Overhead
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.
Liberal credit policy creates a problem of bad debts.
Distinguish between the following.
Fixed Capital and Working Capital.
Distinguish between Fixed Capital and Working Capital.
