Final answer:
Working capital is related to a company's liquidity and short-term financial health, and is not about investment in long-term assets such as property, plant, and equipment.
Step-by-step explanation:
Working capital refers to the funds that a business uses for its day-to-day operations and is calculated as current assets minus current liabilities. This concept does not include long-term investments such as property, plant, and equipment which are considered fixed assets and are used for more durable and long-term purposes. These fixed assets can be classified as physical capital, which includes things like machinery, tools, and buildings used to produce goods and services.
Therefore, the statement "Working capital refers to the investment in property, plant, and equipment." is false. Working capital is more about liquidity and the ability to cover short-term obligations, whereas investments in property, plant, and equipment are more about the long-term productive capacity of a business.