Difference between human capital. Physical capital, working capital
Answers
Answer:
Explanation:
BASIS FOR COMPARISON PHYSICAL CAPITAL HUMAN CAPITAL
Meaning Physical capital implies the non-human assets of the company, such as plant and machinery, tools and equipment, office supplies etc. that help in the process of production. Human capital refers to stock of knowledge, talent, skills and abilities brought in by the employee, to the organization.
Nature Tangible Intangible
Formation Economic and technical process. Social process and conscious decision of the possessor.
Tradability It can be traded in the market. Only the services of human capital can be sold.
Separability It is separable from its owner. It is not separable from its owner.
Financial Statement Shown in financial statement. Not shown in financial statement.
Restriction on mobility Occurs due to trade barriers. Occurs out of nationality and culture.
Nature of depreciation Constant use, results in depreciation. Ageing leads to depreciation, but it can be minimized.