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| Basis for Comparison | Fixed Capital | Working Capital |
| Meaning | Fixed capital is the investments done by the business for accruing long-term benefits. | Working capital is the daily requirement pumped into the business. |
| Acquiring types of assets | Fixed capital is used to acquire non-current assets of the company. | Working capital is used to acquire the current assets of the company. |
| How liquid is it? | Not at all liquid. | Very much liquid. |
| Conversion | It can’t be converted into cash or kind immediately. | It can be converted into cash or kind immediately. |
| Term | Serves the business for an extended period; | Serves the business for a concise period; |
| Accounting period | It offers benefits for more than one accounting period. | It offers benefits for less than one accounting period. |
| Objective | Strategy-oriented. | Operational. |
| Consumption | It doesn’t directly get consumed by the business but serves the business indirectly. | Business needs working capital to operate. |
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