Fixed capital refers to long-term assets that a business uses to produce goods and services. These assets are not intended for immediate sale and typically include items like buildings, machinery, and equipment. Fixed capital is essential for a company's operations, as it helps generate revenue over time. Investing in fixed capital is crucial for growth and sustainability. Unlike current assets, which can be quickly converted to cash, fixed capital requires a significant investment and is usually depreciated over time. Proper management of fixed capital ensures that a business can maintain its production capacity and remain competitive in the market.