Question

Difference between capital formation and capital

Answer 1

For example coke's secret formula is its intellectual capital. A fisherman's net is his capital. On the other words capital formation means the net capital accumulation during an accounting period (i.e one year) for a particular country. The capital formation is used in narrow sense as well as in broader sense .

Answer 2

Capital formation is a term used to describe the net capital accumulation during an accounting period for a particular country.

Capital is a term for financial assets, such as funds held in deposit accounts and/or funds obtained from special financing sources.