Can you explain the difference between working and fixed capital?
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hagen
Apprentice
Joined: 16 Feb 2007
Posts: 9
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 Posted: 06/29/11 - 10:09 Post subject: |
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Is there any difference between working capital and fixed capital? I am sure there is, but I am not able to tell it on my own, so I need some help. Can you explain the difference between working and fixed capital? Maybe this is something that can be explained with no extra words, but simply.
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felic1481
Apprentice
Joined: 12 Jun 2008
Posts: 3
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| Posted: 07/28/11 - 23:36 Post subject: |
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| Fixed capital is something that will not allow you to be too much of a gambler. This is something that will never go away from your account no matter for much negative working capital you have. This is why this is called working capital, because you can work with it and you can loose it, but fixed capital is some kind of guarantee that you will not work with too much negative working capital, much more then you can handle. Is this something that you understand? I hope that you do, because I don’t know how to explain it better. |
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