Differentiate between Human capital and pyshical capital
Answers
Answer:
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
Explanation:
What is Physical Capital?
In economics, the term ‘physical capital’ is used to indicate the data (factor of product) or man-made commodities, which are maintained by the firm such as machinery, computers, tools, equipment and many more. It is used in the manufacturing procedure to allow the change of raw material into finished goods.
When a person wants to begin a firm, a large amount of physical capital is funded in the primary stage, so that the organisation can mark its presence in the market.
What is Human Capital?
Human Capital implies the knowledge which a worker brings to the company in the manner of education, talents, abilities, talents, knowledge, preferences etc., which he or she has gathered over time. As a consequence, the employees are regarded as an asset, whose value can be enhanced, by spending in their coaching and improvement, like any other asset of the firm.
The notion makes it obvious that all the workers at the job, are unequal and they contrast in their skillfulness.
This article is a ready reckoner for all the students to learn the difference between Physical Capital and Human Capital.
please mark me as brainliest