& What are the characteristic of capital? Difference
between Economic capital and Accounting capital
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Financial capital most commonly refers to assets needed by a company to provide goods or services, as measured in terms of money value. Economic capital is the estimated amount of money needed to cover possible losses from unexpected risk.
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Explanation:
Capital is that part of wealth which can be used for further production of wealth. According to Marshall, “Capital consists of all kinds of wealth, other than free gifts of nature, which yield income.” Therefore, every type of wealth other than land which helps in further production of income is called capital.
Money raised from debt and equity issues is normally referred to as capital. ... Financial capital most commonly refers to assets needed by a company to provide goods or services, as measured in terms of money value. Economic capital is the estimated amount of money needed to cover possible losses from unexpected risk.
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