Subjective Type

Define Physical capital

Solution

Physical capital consists of tangible, man-made objects that a company buys or invests in and uses to produce goods. Physical capital items, such as manufacturing equipment, also fall into the category of fixed capital, meaning they are reusable, and not consumed during the production process.Physical capital consists of man-made goods that assist in the production process. Cash, real estate, equipment, and inventory are examples of physical capital. Physical capital values are listed in order of solvency on the balance sheet.

Fixed capital is the portion of total capital outlay of a business invested in physical assets such as factories, vehicles, and machinery that stay in the business almost permanently, or, more technically, for more than one accounting period.Examples are:-

Land

Building

Manufacturing machinery and equipment

Other equipment.

Human capital is the stock of habits, knowledge, social and personality attributes embodied in the ability to perform labour so as to produce economic value. Human capital is unique and differs from any other capital. It is needed for companies to achieve goals, develop and remain innovative. Examples:-

These qualities include higher education, technical or on-the-job training, health, and values such as punctuality. ..

SIMILAR QUESTIONS

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