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What is difference between fixed and working capital?
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What is difference between fixed and working capital?
"Four differences between Fixed capital and Working capital is given below.
Fixed capital:
- It refers to the capital invested in the long term assets of the company. Money is never invested in this type of capital.
- To establish a company or business, fixed capital is vital.
- The finance for this type of capital is obtained from long-term debt.
- Fixed capital serves strategic objectives.
Working capital:
- It refers to the "capital invested" in the current assets of the company. Money is the major investment of this "type of capital".
- To run and maintain a company or business, "working capital" is vital.
- To run and maintain a company or business, "working capital" is vital.
- The finance for this type of capital is obtained from short-term debt.
- Working capital serves operational objectives."
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What is difference between fixed and working capital?
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What is difference between fixed and working capital? for Class 9 2024 is part of Class 9 preparation. The Question and answers have been prepared according to the Class 9 exam syllabus. Information about What is difference between fixed and working capital? covers all topics & solutions for Class 9 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is difference between fixed and working capital?.
What is difference between fixed and working capital? for Class 9 2024 is part of Class 9 preparation. The Question and answers have been prepared according to the Class 9 exam syllabus. Information about What is difference between fixed and working capital? covers all topics & solutions for Class 9 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is difference between fixed and working capital?.
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