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CBSE Class 9 Answered

Mention two differences between fixed capital and working capital.
Asked by Topperlearning User | 25 Jun, 2014, 05:01: PM
answered-by-expert Expert Answer

 

 

Fixed capital

Working capital

Tools, machines (generator, computer etc.) and buildings are known as fixed capital.

Liquidity (money in hand) and raw materials are known as working capital.

These tools of production do not get exhausted easily and can be used over a long period of time.

These factors of production do not last for long and are used up in production.

 

Answered by | 25 Jun, 2014, 07:01: PM

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