Planning Process: Concept and Steps Last Updated : 07 Jul, 2023 Comments Improve Suggest changes Like Article Like Report Planning is the process of setting objectives for a given period and formulating various courses of action to achieve them and selecting the best possible alternatives from the various courses of action available there. According to this application, planning is a choice-making activity because it involves setting up objectives and deciding the appropriate course of action to achieve the objective. It must be remembered that plans are always developed for a given period. Steps in Planning Process Following are the steps in the planning process: Setting Objectives: The idea behind planning is to achieve desired objectives. Therefore, the first step is to clearly define and describe the objectives of the organization. Firstly, the major objectives should be specified, and then they should be broken down into individual, sectional and departmental objectives. Objectives serve as guidelines for discussion-making in terms of resource allocation. Work schedule, nature of actions, etc., are kept in mind while setting objectives. All efforts must be made to anticipate the problems and relevant opportunities that are likely to arise in the future. For example, an enterprise ABC Ltd. is opening their new branch of laptops, firstly they have to specify the objective, i.e., to sell 3,000 units this year, which is double the previous year's sales. For achieving this aim, they have to distribute this objective into various departments, such as production, marketing, sales, and finance departments. By distributing the main objective into departmental objectives, the company will face fewer problems in managing its organization.Developing Planning Premises: The next step in planning is to establish premises. Planning premises are the anticipated environment in which the plans are expected to operate. These include assumptions and forecasts in the future and knowing conditions that will affect the course of the plan. In short, these provide the environment and the boundaries within which the plans will be executed. Planning premises may be classified as internal and external premises, controllable, semi-controllable, and uncontrollable premises, tangible and intangible premises, and the last foreseeable and unenforceable premises. For example, ABC Ltd. company has set the objective to sell 3,00,000 units of laptops this year. For this, they need to gather information by forecasting, as it is an important technique in developing premises. The enterprise has set this objective after forecasting the increase in demand for laptops due to work from the home policy. An accurate forecast is very important for successful plans.Identifying alternative courses of action: After setting the objectives and making assumptions about the future. The next step is to determine alternative courses of action through which the organization can achieve its objectives. In order to identify the various alternative courses of action, it is required to collect all necessary information from primary and secondary sources. The information collected must be correct and believable. The only information which is directly and strategically related to the achievement of the desired objective should be considered. For every plan, there are several options. All the alternative courses of action should be identified. For example, ABC Ltd. should have an innovative way that can be adopted by involving employees and consumers in sharing their own ideas. The company has many alternatives like decreasing prices, increasing advertisement, promotion, and after-sale service. In important projects, the enterprise generates more alternatives through discussion amongst the members of the organization.Evaluating alternative courses: After identifying different alternatives the next step is to evaluate each alternative. Evaluation means the study of the performance of various actions. All the possible alternatives should be evaluated keeping in mind their expected cost and benefit to the organization. Comparison among the alternatives should be made in terms of factors, such as the risk involved, planning premises, goals to be achieved, etc. The positive and negative points of each alternative must be thoroughly examined, and thereafter planner should make a choice. For example, ABC Ltd. should evaluate all the possible alternatives and check their positive and negative points.Selecting an alternative: After evaluating various alternatives, the next step is to select the most suitable force of action. The basic, detailed, and derivative plans, such as policies, rules, programs, and budgets should be formulated. This is because the derivative plans help in the implementation of the basic plans. Most of the plans may not always be subjected to mathematical analysis. In these cases, the subject and the management experience, judgment, and at times institute play an important role in setting the most suitable alternative. Many times combination of plans is also selected instead of selecting one best course. For example, ABC Ltd. will start T.V advertisements, online marketing, and direct contact with MNCs to increase sales, as selecting the most suitable alternative will increase the profit of the company. Implementing the plan: This step is concerned with transforming the plan into action. The plan must be communicated to the employees in detail. This, in turn, will help to secure cooperation from them. Useful suggestions from employees must be considered, and they should be motivated to execute the plan to the fullest of their abilities. The plan has to be effectively implemented by the real executor. This step would also involve organizing labour and purchasing machinery. For example, ABC Ltd. starts hiring more salesmen in the company to contact and connect with more MNCs. The company will start creating more interesting advertisements on the online platform. They will establish more service workshops in various cities.Follow-up- action: After implementing the plan, the last step is to periodically review the existing plan to ensure that the plan is effective. The plan must be consistently monitored, and in case of any deficiency, it should be modified and adjusted. For example, a proper feedback mechanism was developed by ABC Ltd. so that they can take all the complaints and reviews from their consumers and provide a better service experience. Actual customer response, revenue collection, employee response, etc., are very important for the company. Comment More infoAdvertise with us Next Article Types of Plans: Standing Plan and Single-use Plan R raiyaanakhtar786 Follow Improve Article Tags : Class 12 Business Studies Commerce Similar Reads CBSE Class 12 Business Studies Notes Business Studies is a study of how to control and manage an organization effectively and efficiently. After providing the basic knowledge about Business Studies in Class 11 Notes, GeeksforGeeks has designed Notes for Class 12 Business Studies according to the CBSE Syllabus. The mentioned below Chapt 9 min read Chapter 1: Nature and Significance of ManagementManagement : Meaning, Characteristics, Objectives, and ImportanceWhat is Management?A universal concept that is needed in every organisation whether it is a business organisation or a non-business organisation such as hospital school, etc., is known as Management. An organisation's success depends on the successful functioning of its management and is always requ 8 min read Difference between Efficiency and EffectivenessWe can define management as the process of getting things done through and with people to achieve a common goal efficiently and effectively. When we go through the definition, we find the two buzzwords efficiency and effectiveness which are alike terms and popularly used by managers. They are essent 4 min read Nature of Management as a Science, Art and ProfessionThe term management is used in various senses. Some consider it as an activity, some treat it as a group, some call it a discipline, whereas some look at it as a process. Management as an activity is getting things done through others. Management as a group is all those who manage. Management as a d 7 min read Coordination in Management : Concept, Features & ImportanceWhat is Coordination?Coordination is the force that connects all managerial functions and ensures the smooth and efficient functioning of an organization. All the activities of an organization such as purchase, production, sales, and finance are connected through this link of coordination, which ena 7 min read Difference between Coordination and CooperationEffective coordination cannot be achieved without cooperation, so a manager should try to achieve both coordination and cooperation. Coordination and cooperation are two wheels of a bicycle. If any one wheel is missing, then the bicycle cannot function. Similarly, both coordination and cooperation a 2 min read Chapter 2: Principles of ManagementNature and Significance of Principles of ManagementThe management principles are broad and general guidelines for decision-making and behaviour. These guide managers in taking actions and decisions. These principles are different from principles of science as they are not rigid. They are applied creatively to humans as per the needs and demands of t 5 min read 14 Principles of Management by Henri FayolPrinciples of Management are like a guidebook for leaders to run a company well. They help managers make plans, organize tasks, and motivate teams, and, they serve as frameworks for managers to deal with the difficulties of leading people and achieving goals within an organization. Principles of Man 12 min read Difference between Unity of Command and Unity of DirectionUnity of Command and Unity of Direction are two of the essential principles of management from among the 14 principles identified by Henry Fayol. Table of Content What is Unity of Command?What is Unity of Direction?Difference between Unity of Command and Unity of DirectionWhat is Unity of Command?Ac 3 min read Principles of Scientific ManagementScientific Management is a management technique that utilizes scientific methods to enhance workforce efficiency. It uses scientific methods that include systematic, objective, and logical principles and techniques to solve management problems. What is Scientific Management?The use of scientific pri 7 min read Techniques of Scientific ManagementScientific management means the use of scientific methods to solve the problems of management. It is the art of knowing exactly what you want your employees to do and seeing that they do it in the best and cheapest ways. It involves the study of each activity in detail and doing the work in such a m 8 min read Difference between Time Study and Motion StudyTime Study and Motion Study are two kinds of Work Study. Time study refers to the study of time taken to perform a work while Motion Study is the study of motions performed during work. These two types of Work study are important concepts in the field of management science. This article focuses on t 3 min read Difference between Fayol and Taylor Theories of ManagementHenri Fayol and F.W Taylor made a great contribution to the field of management, which formed the basis of practice for future managers. Fayol was a French industrialist who worked in a French Mining Company. He is known as 'the Father of General Management' because of his contribution. Apart from d 2 min read Chapter 3: Business EnvironmentWhat is Business Environment ? | Meaning and FeaturesWhat is Business Environment? The word environment is derived from the French word 'environ', which means surrounding, i.e., external conditions involving manifold variables like objects or conditions affecting the development and growth of all living organisms, including human beings. There is clos 4 min read Importance of Business EnvironmentWhat is Business Environment?Business environment means the total of all individuals, institutions, and other forces that are outside the control of a business enterprise, but that may affect its performance. In other words, the business environment can be defined as all those conditions and forces 6 min read Dimensions of Business EnvironmentWhat is Business Environment?Business Environment means the total of all individuals, institutions, and other forces that are outside the control of a business enterprise, but that may affect its performance. In other words, a business environment can be defined as all those conditions and forces un 6 min read Economic Environment in IndiaEconomic environment refers to all these forces that have an economic impact on business activities. We know that business is an economic organization. Therefore, its survival and growth are dependent on economic factors. The economic environment includes various factors, such as inflammation, inter 5 min read New Industrial Policy : Features & ImpactIn order to review a backward economy, it was necessary for the government to plan for new economic planning. The new economic planning focused on the role of the public sector. The main objective of the new economic planning was: to initiate rapid economic growth in order to raise the standard of l 7 min read Concept and Features of DemonetizationWhat is Demonetization?When a currency is stripped of its legal status and replaced with a new currency, it is known as demonetization. It is also interpreted as a shift on the part of the government indicating that tax evasion will no longer be tolerated or accepted. The government of India, announ 4 min read Chapter 4: PlanningPlanning: Meaning, Features, Importance and LimitationsWhat is Planning?Planning is a blueprint of the course of action to be followed in the future. It is also a mental exercise that requires imagination, foresight, and sound judgment. It is thinking before doing. It is a preparatory step and refers to detailed programs regarding the future course of a 9 min read Planning Process: Concept and StepsPlanning is the process of setting objectives for a given period and formulating various courses of action to achieve them and selecting the best possible alternatives from the various courses of action available there. According to this application, planning is a choice-making activity because it i 5 min read Types of Plans: Standing Plan and Single-use PlanA management plan is a global plan that provides the objective of any organization's project. A plan certainly defines responsibilities, roles, etc., to ensure the achievement of the targeted goal. A plan is a resource that everyone in the firm can use, be it the top-level manager or the low-level m 9 min read Difference between Standing Plans and Single-Use PlansStanding Plans and Single-Use Plans are two different types of plans. The former is a plan which is made for activities that occur after regular intervals of time; however, the latter is a plan which is made for a one-time event or project. Table of Content What is a Standing Plan?What is a Single-U 3 min read Difference between Procedures and MethodsProcedures and Methods are two types of Standing Plan. Procedures are the routine steps to carry out activities in an organization. However, a Method is a prescribed process in which a particular task or activity is performed as per the objective. What are Procedures? Routine steps to carry out acti 2 min read Difference between Procedures and RulesProcedures and Rules are two types of Standing Plan. Procedures are the routine steps to carry out activities in an organization. However, Rules are the specific statements that inform what must and must not be done. What are Procedures? Routine steps to carry out activities in an organization are k 2 min read Difference between Policies and RulesPolicies and Rules are two types of standing plans of an organisation. Policies are the general statements that guide thinking and channel energy toward a particular direction. However, Rules are the specific statements that inform what must and must not be done. What are Policies? The general state 2 min read Difference between Rules and MethodsRules and Methods are two types of Standing Plan. Rules are the specific statements that inform what must and must not be done. However, a Method is the prescribed process in which a particular task or activity is performed as per the objective. What are Rules? Specific statements that inform what m 2 min read Chapter 5: OrganisingOrganising : Meaning, Importance and ProcessWhat is Organising in Management?Organising refers to a process consisting of a series of steps to identify and group various activities, collect or assemble various resources and establish authority relationships with responsibility amongst job positions. It can be mentioned as collecting and utili 5 min read Types of Organisation StructureThe term structure refers to the management of parts and interrelationships among activities and people. Therefore, organisation structure is an element of job position that provides the basis on which managers and non-managerial employees perform their assigned jobs. It is the role assigned to them 7 min read Difference between Functional Structure and Divisional StructureOrganisation Structure is an element of job position that provides the basis on which managers and non-managerial employees perform their assigned jobs. Functional Structure and Divisional Structure are types of Organisation Structure. What is Functional Structure? The structure under which jobs of 2 min read Formal and Informal OrganisationOrganising refers to identifying and growing different activities in the organisation. It brings together human and non-human resources to achieve organisational goals. Organising helps in the implementation of the plan by clarifying job and working relationships for the attainment of desired goals. 7 min read Difference between Formal and Informal OrganisationOrganisations are a network of relationships amongst people working together so as to get the best output in an enterprise. The two types of organisation formed on the basis of relationships are  Formal Organisation and Informal Organisation. What is a Formal Organisation?In every organisation, empl 3 min read Elements and Importance of DelegationIt is not possible for an individual to perform all the tasks assigned to him. To meet the targets, the appropriate authority is to be delegated to the respective person. Delegation of authority means the division of authority, position, and power flowing downwards to the subordinate. It can also be 4 min read Difference between Authority, Responsibility and AccountabilityAuthority, Responsibility, and Accountability are three important elements or processes of Delegation. All these three elements are essential for successful achievement of organisational goals. What is Authority? The right of an individual to command his subordinates and take actions within the powe 3 min read Centralization and DecentralizationAs far as we are concerned with different business organizations, Centralization and Decentralization are two relative terms. Centralization focuses all the decision-making functions at the top of the management hierarchy. Such a situation would get rid of the need for a management hierarchy. In oth 6 min read Difference between Centralization and DecentralizationAccording to Henri Fayol,'' Everything which goes to increase the importance of a subordinate's role is decentralization, everything that goes to reduce it is centralization''. What is Centralization? Centralization refers to the concentration of authority at the top level of the organisation. It is 2 min read Difference between Delegation and DecentralizationDelegation and Decentralization are two terms which are mostly misunderstood as the same. Delegation of authority means assigning work to subordinates and giving them authority to do it. However, Decentralization means the dispersal of authority throughout the organisation. What is Delegation?Delega 2 min read Chapter 6: StaffingStaffing : Meaning, Definition, Features and ImportanceWhat is Staffing?Staffing is that part of management concerned with obtaining, utilizing, and maintaining capable people to fill all positions in the organization from top level to bottom level. It involves the scientific and systematic procurement, allocation, utilization, conservation, and develop 3 min read Staffing and Human Resource ManagementStaffing and Human Resource Management Human resource management is a process that brings people and organizations together so that organizational and individual goals can be achieved. Human resource management can be defined as the art of procuring, developing, and maintaining a competent workforce 3 min read Staffing ProcessStaffing is the art of acquiring, developing, and maintaining a satisfactory and satisfied workforce. Staffing is that function by which a manager builds an organization through the recruitment, selection, and development of the individual, which also includes a series of activities. It ensures that 8 min read Sources of Recruitment (Internal and External: Meaning, Merits and Demerits)Recruitment can be defined as the process of publicizing information about various job vacancies in the organization. It is a process of searching for prospective employees and encouraging them to apply for the job in the organization. Recruitment is a positive process because it stimulates people t 10 min read Difference between Internal Recruitment and External RecruitmentInternal Recruitment and External Recruitment are two ways of recruiting people into an organization. In the former method, a company makes use of the existing staff to fill up the vacant jobs. However, in the latter method, a company searches for employees from outside sources. Table of Content Wha 3 min read Steps in Selection ProcessWhat is Selection?Selection is the process of recognizing and choosing the best candidate out of several potential candidates for a job. The candidates who are not suitable for the job are eliminated. For selection, the candidates have to take several employment tests and interviews. At every step, 5 min read Difference between Recruitment and SelectionRecruitment and Selection are two of the most important terms used in the hiring process. Recruitment is the process of searching for appropriate employees and encouraging them to apply for jobs whereas the process of identifying and choosing the best person out of a number of prospective candidates 5 min read Importance of Training and Development to Organisation and EmployeesWhat is Training and Development? Training is a process by which the skills, talents, and capabilities of the employees of an organization are increased. Training helps employees to grasp new skills and utilize the knowledge provided. It is not only required by the new employees, but it is also nece 4 min read Methods of Training: On-the-Job Methods and Off-the-Job MethodsMeaning of TrainingTraining is a process by which the skills, talents, and capabilities of the employees of an organization are increased. Training helps employees to grasp new skills and utilize the knowledge provided. Training is not only required by the new employees, but it is also necessary for 5 min read Difference between On-the-Job Training Methods and Off-the-Job Training MethodsOn-the-Job Training Methods and Off-the-Job Training Methods are two different training methods. In the first method, the employees are trained at their actual workplace, while they are doing work. However, in the second method, the employees are provided training outside their actual workplace. Wha 2 min read Difference between Training and DevelopmentTraining and Development are one of the most important aspects of staffing. Training and development play an important role in improving the effectiveness and efficiency of the organisation and the employees. Training increases job skills while development shapes attitude. Training focuses on develo 2 min read Difference between Training, Development and EducationTraining, Development, and Education are different from each other. Training focuses on developing the skills, which are already possessed by an employee; development focuses on developing hidden qualities and talents of employees; and education focuses on increasing the knowledge and understanding 2 min read Chapter 7: DirectingDirecting: Meaning, Characteristics and ImportanceWhat is Directing?The process of instructing, guiding, counselling, motivating, and leading people in an organisation to achieve the organisational goals is known as Directing. Directing not only includes order and instructions by a superior to the subordinates but also includes guiding and inspiri 4 min read Principles and Elements of DirectingDirecting is the managerial function of guiding, inspiring, instructing, and harnessing people towards the accomplishment of the desired results. Directing includes issuing orders and instructions that are clear and complete; continuing guidance and supervision to ensure that the assigned tasks are 5 min read Importance of SupervisionSupervision refers to the process by which managers oversee the activities and performance of their subordinates to ensure that tasks are completed correctly, efficiently, and in alignment with organizational goals. Effective supervision involves various responsibilities and practices, including Gui 5 min read Features and Importance of MotivationWhat is Motivation?The process of stimulating and inspiring people at work to contribute to the best of their capability for the achievement of organisational objectives is known as Motivation. Motivation is the inner psychological force that activates and compels a person to behave in a particular 4 min read Process of MotivationThe process of stimulating and inspiring people at work to contribute to the best of their capability for the achievement of organisational objectives is known as Motivation. Motivation is the inner psychological force that activates and compels a person to behave in a particular manner. It is a pro 4 min read Maslow's Hierarchy of Needs TheoryBehind every successful organisation, there is a highly motivated and committed team of employees. Since motivation is complex as it deals with human behaviour, various researchers have given different theories. Maslow's Hierarchy of Needs theory is considered very significant as it highlights the n 7 min read Features and Importance of LeadershipThe process of influencing the behaviour of people towards achievement of organisational goals is known as Leadership. It indicates the ability of an individual to maintain good interpersonal relations with followers and motivate them to contribute to achieving organisational objectives. An individu 3 min read Types of Leadership StylesThe process of influencing the behaviour of people towards the achievement of organisational goals is known as Leadership. It indicates the ability of an individual to maintain good interpersonal relations with followers and motivate them to contribute to achieving organisational objectives. An indi 4 min read 10 Qualities of a Good LeaderLeaders are individuals who possess attributes of leadership. They focus on satisfying the behavior of each member of the group and the realization of group goals. A leader inspires employees, provides psychological support, helps in implementing changes, handles conflicts effectively, and works tow 5 min read Which is more effective Push or Pull marketing ?What is Push Marketing?Push marketing is when a company actively shows its products to people, instead of waiting for customers to come looking for them. It's like when someone tries to sell you something directly, by either talking to you about it, sending you ads in the mail, or putting up big pos 5 min read Communication: Meaning, Definition, Features and ImportanceWhat is Communication?Communication is an indispensable element in human relationships. Humans interact with one another through communication. The term 'communication' is derived from the Latin word 'communis', which means common. Therefore, communication is defined as an exchange of facts, ideas, 4 min read Elements of Communication ProcessThe process of exchange of ideas, views, facts, feelings, etc., between two or more persons in order to reach a common understanding is known as Communication. "Communication is the sum of all things, a person does when he wants to create an understanding in the minds of another. It involves a syste 3 min read Communication Channels | Formal and InformalThe path through which information flows from sender to receiver is known as the channel of communication.There are two main channels of communication: Formal CommunicationInformal CommunicationFormal Communication Official communication taking place in an organisation is known as formal communicati 3 min read Formal Communication: Meaning, Types, Merits and DemeritsWhat is Formal Communication ? Official communication taking place in an organisation is known as formal communication. It is related to the status or position of the sender and receiver. It generally takes place either between employees of different levels as in the case of superior-subordinate or 3 min read Informal Communication: Meaning, Networks, Merits and DemeritsThe process of exchange of ideas, views, facts, feelings, etc., between two or more persons to reach a common understanding is known as Communication. Communication is a social process as it involves two or more persons. It is a pervasive and continuous function. There are two main communication cha 3 min read Barriers to Effective CommunicationThe factors which obstruct the effectiveness of communication is known as Communication Barriers. These barriers cause a mismatch between the understanding of the message by the sender and the receiver. These barriers can occur at any stage of the communication process. Table of Content Classificat 6 min read Measures to improve Communication EffectivenessThe factors that obstruct the effectiveness of communication are known as communication barriers. Through these barriers, communication can be prevented or a part of it is filtered or incorrect information may be carried, which leads to misunderstanding.For the success of an organisation, effective 3 min read Chapter 8: ControllingControlling in Management: Meaning, Nature, Importance and LimitationsWhat is Controlling in Management?Every organisation aims at achieving some goals from its business activities and it is essential to ensure whether or not the firm is performing activities according to the pre-determined goals. The controlling function of management helps an organisation in ensurin 6 min read Relationship between Planning and ControllingPlanning and Controlling are inter-related to each other. Planning is a blueprint of the course of action to be followed in the future. It is also a mental exercise that requires imagination, foresight and sound judgment. It is thinking before doing. It is a preparatory step, and it refers to detail 4 min read Process of ControllingControlling means comparing the actual performance of an organisation with the planned performance and taking corrective actions if the actual performance does not match the planned performance. Controlling cannot prevent the deviation in actual and planned performance; however, it can minimise the 8 min read Chapter 9: Financial ManagementRole and Objectives of Financial ManagementWe all know that finance is essential for running a business. Business enterprises require careful financial planning and understanding of the resultant capital structure, risks, and profitability that they may have. All these have an effect on shareholders as well as the employees. They require an 5 min read Types of Financial DecisionsWhat is Financial Decision?The decisions regarding the financial matters of any organization are known as Financial Decisions. In simple terms, it refers to the decision regarding the investment of the funds of the business in various assets. Financial management focuses on providing solutions to th 3 min read Investment Decision: Meaning and Factors affecting Investment DecisionWhat is Investment Decision? Investment decision refers to the decisions that involve the investment of various resources of the firm to gain the highest possible return on investment for their investors. An investment decision is categorized as a long-term and short-term investment decision. Financ 4 min read Financing Decision: Meaning and Factors affecting Financing DecisionFinancial Management is concerned with the management of the flow of funds and involves decisions related to the acquisition and application of funds in long-term and short-term assets. It is concerned with two aspects, they are procurement of funds as well as usage of finance. Financial decision re 4 min read Dividend Decision: Meaning and Factors affecting Dividend DecisionFinancial Management is concerned with the management of the flow of funds and involves decisions related to the acquisition and application of funds in long-term and short-term assets. It is concerned with two aspects, they are procurement of funds and usage of finance. Financial decision refers to 3 min read Financial Planning: Objectives and ImportanceFinancial Planning is essential for the preparation of a financial blueprint for a business organization. Its main objective is to ensure that ample funds are available at right time. If enough funds are not available the firm will not be able to honour its commitments and carry out its plans. On th 4 min read What is Capital Structure?Finance being the life force of every organization, needs to be estimated, raised and utilized properly to maximize the returns from such investments. A correct estimate of current and future needs of capital needs to be made to have an optimum capital structure which shall help the organization to 6 min read Factors affecting the choice of Capital StructureWhat is Capital Structure? Capital structure decisions involve determining the types of securities to be issued as well as their relative share in the capital structure. The financial decision regarding the composition of the capital structure is made after the financial requirements have been estab 8 min read What is Fixed Capital and Working Capital?We all know that finance is essential for running a business. Business enterprises require careful financial planning and understanding of the resultant capital structure, risks, and profitability that they may have. All these have an effect on shareholders as well as the employees. They require an 10 min read Factors Affecting the Fixed CapitalThe assets which remain in the business for a period of more than one year are known as Fixed Assets. For example, plant, machinery, building, land, furniture, equipment, etc. These assets are not meant for sale. Fixed Capital is the money invested by a company in its fixed assets, which are to be u 4 min read Factors Affecting the Working CapitalExcess of current assets of an organisation over its current liabilities is known as Working Capital. Simply put, it is the finance available to an organisation for its day-to-day business operations. It can also be defined as that part of the total capital, which is required for holding current ass 6 min read Like