Easy way to learn and memorized – class 12th – S.P – Notes of business finance – Difference between Fixed Capital and Working Capital, Distinguish between working capital and fixed capital – business finance – Secretarial Practice – Notes, & Distinguish Between – according to the New Textbook for HSC Board – Difference between, Study material, studies notes, study notes.
| Sr.No | Distinction point | Working Capital | Fixed Capital |
| 1. | Meaning | Working capital refers to current assets minus current liabilities. | Fixed capital refers to any kind of physical capital. example assets |
| 2. | Sources | Sources of Working capital are short term loans, deposits, trade credit, etc | Sources of Fixed capital fund can come from selling shares, debentures, long term loans, bonds, etc |
| 3. | Purpose | Purpose of Working capital is to invested in short term assets such as cash, account receivable, etc. | Purpose of fixed Capital is to invested in assets such as land, building, equipment, etc. |
| 4. | Nature | Working capital is circulating capital | It stays in business almost permanently i.e. for more than one accounting year. |
| 5. | Risk Involved | Investment in working capital is less risky. | Investment in fixed capital implies a risk. |
| 6. | Objective of investment | Investor invests money in working capital for getting immediate return | Investor invests money in fixed capital hoping to make future profit. |