Horti-Business Management (2+0)

Financing the business

• The capital of a business consists of those funds used to start and run the business. Capital may be of two types: fixed and working.
  
• Fixed capital refers to items bought once and used for a long period of time. This includes such things as land building fixtures and equipment.
  
• Working capital is the type of funds, which is needed for carrying out day to day operations of the business smoothly. The management of working capital is no less important than the management of ‘long term’ financial investment.