Working Capital Management Question:
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What is Fixed working capital?

Answer:

Fixed working capital is that portion of the total capital that is required to be maintained in the business on the permanent basis or uninterrupted basis. This working capital is required to invest in fixed assets. The requirement of this type of working capital is unaffected due to the changes in the level of activity.

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Do you know what current liabilities can be used as spontaneous sources for financing the working capital?What is Variable working capital?