CAPITALANCHETA, Kenzie M.

BSED 3F-1

CapitalCapital can represent the monetary resources companies use to purchase natural resources, land and other capital goods.

It also represents the major physical assets individuals and companies use when producing goods or services.

Capital

Different Types of Capital

PHYSICAL CAPITAL• These are all Long-

lasting physical goods that are used to make other things.• Consist of things like

machinery and equipment, factory buildings and even hand tools.

HUMAN CAPITAL• Consist of skills and

knowledge possessed by workers.• Product of

education and training

DifferentFactors of Capital

FIXED CAPITAL• This includes

machinery, factories, equipment, new technology, buildings, computers, and other goods.

WORKING CAPITAL• includes the stocks of

finished and semi-finished goods• Also used to refer to

liquid assets (money) needed for immediate expenses linked to the production process

FINANCIAL CAPITAL• This is simply the

amount of money the initiator of the business has invested in it.• It also refers to his

or her net worth tied up in the business

INFRASTRUCTURE• It is a stock of

capital that is used to maintain the whole economic system .

REFERENCE• http://smallbusiness.chron.com/economic-definition

-four-factors-production-3941.html• https://en.wikipedia.org/wiki/Factors_of_production• http://study.com/academy/lesson/four-factors-of-pr

oduction-land-labor-capital-entrepreneurship.html• http://www.investopedia.com/video/play/factors-pr

oduction/• https://simple.wikipedia.org/wiki/Capital_(economic

s)