Working capital includes money in hand and ____.

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Working capital includes money in hand and Raw materials.
Raw materials and money in hand form the components of working capital. Cash is needed during production to make payments and buy other necessary items. The raw material is required to produce a product. There are various sources from which the money can be procured and used as a part of the working capital. Moneylenders are a significant source of funds. Small and Big farmers borrow money from the moneylenders. Banks also offer loans to farmers. It is a part of the physical capital. A variety of inputs are required at every stage of production. These form the physical money needed during production. There are two components of physical capital. They are- Fixed capital and Working capital. Fixed capital includes tools, machinery, land, etc. They involve a considerable sum of money and are the company's tangible assets.

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