define phyisical capital, fixed capital and working capital
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Answer:
Explanation:
Physical capital: Physical capital is the variety of inputs required at every stage during production. It includes fixed capital and working capital. ... Raw materials and money in hand are called working capital. Unlike tools and machines, these are used up in production.
Physical capital refers to assets, such as building, machinery, and vehicles, which are owned and employed by an organisation. Physical capital constitutes one of the factors of production other than land and labour. The assets constitute fixed capital means that they are not consumed in the process of production.
In accounting, fixed capital is any kind of real, physical asset that is used repeatedly in the production of a product. In economics, fixed capital is a type of capital good that as a real, physical asset is used as a means of production which is durable or isn't fully consumed in a single time period.
Working capital is a financial metric which represents operating liquidity available to a business, organization, or other entity, including governmental entities. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital.