Gym: Pob SBA Sample – Sources of Fixed and Working Capital
Sources of fixed and working capital
Fixed capital is the durable long term assets of a business which are used over a long period of time and are tied up to the gyms permanent usage.
Example: land, machinery, etc
Sources of fixed capital:
1. Issue of right shares: Issue of shares is the most important source of fixed capital. Most companies collect fixed capital by issuing shares
2. Private placement of shares: the company sells its shares directly to a small-group of investors like bank, insurance companies, financial institutions, mutual funds,
Circulating capital/current assets (working capital) is capital which is continually changing in, total value or nature.
Examples: cash, bank balance, etc
Examples of fixed capital are: