[[1]] can be categorized as fixed capital and working capital.

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Capital can be categorized as fixed capital and working capital.
An essential component of any firm is capital. No firm can be operated or even exist without finance. Working capital and fixed capital are the two types of capital that can be distinguished. Working capital and fixed capital are primarily distinguished by the capital invested by the company in acquiring the fixed assets needed for the operation of the business. On the other hand, the business needs working capital to finance its ongoing operations. Non-current assets that would be useful to the company for more than one accounting period are purchased using fixed capital. On the other hand, working capital is utilized to support the firm daily, meeting the needs of regular production and operation.

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