Explain what is the difference between fixed and Woking capital to someone Who doesn't understand ?

Fixed capital refers to the long-term assets that a company owns and uses to generate income, such as buildings, machinery, and equipment. These assets are not easily converted into cash and are essential for the company's operations.

Working capital, on the other hand, refers to the short-term assets and liabilities that a company uses to fund its day-to-day operations. This includes cash, inventory, accounts receivable, and accounts payable. Working capital is important for covering the company's short-term expenses and ensuring smooth operations.

In simple terms, fixed capital is the long-term investments that a company makes in its assets, while working capital is the short-term funds that a company needs to keep its operations running smoothly.