Mention two differences between fixed capital and working capital.
| 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. |