Type Of Capital

Fixed capital

This is money which is used to purchase assets that will remain permanently in the business and help it to make a profit.

Working capital

Working capital is that part of capital invested which is used for running the business such like money which is used to buy stock, pay expenses and finance credit.

Own and borrowed capital

Capital contributed by the owner or entrepreneur of a business, and obtained, for example, by means of savings or inheritance, is known as own capital or equity, whereas that which is granted by another person or institution is called borrowed capital,