Answer / Varun Kumar Vivek

1. Working Capital Management and Capital Budgeting are two different aspects of financial management. Working Capital Management involves the short-term management of a company's current assets (like cash, inventory, accounts receivable) and current liabilities (like accounts payable, short-term loans). The goal is to maintain an optimal level of working capital to support day-to-day operations. On the other hand, Capital Budgeting involves long-term decisions about investing in fixed assets (like property, plant, equipment, intangible assets) and evaluating the potential return on investment.

2. Current Assets are resources that can be converted into cash within one year or less. Examples include cash, marketable securities, accounts receivable, and inventory. Fixed Assets, also known as non-current assets, are long-term assets that cannot be easily sold or converted into cash. They are used in the operation of a business over a period of more than one year. Examples include property, plant, equipment, and intangible assets like patents or copyrights.

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