CBSE
Class 10 Class 12
Fixed Capital: It refers to money invested in the fixed assets, which is to be used over a long period of time, usually for more than one year like: plant and machinery, furniture and fixture, land and building etc.
Fixed Capital: It refers to money invested in the fixed assets, which is to be used over a long period of time, usually for more than one year like: plant and machinery, furniture and fixture, land and building etc.
Management of fixed capital involves around allocation of firm’s capital to different projects or assets with long-term implications for the business. These decisions are called investment decisions or capital budgeting decisions and affect the growth, profitability and risk of the business in the long run.
Factors affecting the Requirement of Fixed Capital are as below:
Working Capital: It refers to money invested in the current assets, which is to be used over a short period of time. These assets are expected to get converted into cash or cash equivalents within a period of one year.
Factors affecting the Working Capital Requirements are as below:
