What is capital ? Distinguish between physical and working capital?
Dear Student
Capital: Capital is the amount invested by the owner into the business. It may be in the form of money or assets having monetary value.
Physical capital: Physical capital refers to the stock of all the tangible assets, such as building, machinery tools etc. which are used in the process of production at very stage. It includes both fixed capital and working capital.
Working capital : Working capital is part of physical capital. The raw material and money in hand are called working capital. They are used up in the process of production and alter from day-to-day.
Regards
Capital: Capital is the amount invested by the owner into the business. It may be in the form of money or assets having monetary value.
Physical capital: Physical capital refers to the stock of all the tangible assets, such as building, machinery tools etc. which are used in the process of production at very stage. It includes both fixed capital and working capital.
Working capital : Working capital is part of physical capital. The raw material and money in hand are called working capital. They are used up in the process of production and alter from day-to-day.
Regards