Distinguish between financial capital and physical capital
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The word "capital" has many differentmeanings in economics and finance. Financial capital most commonly refers to assets needed by a company to provide goods or services, as measured in terms of money value. Money raised from debt and equity issues is normally referred to as capital.
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One way to describe assets is to break them down into categories, and two broad breakdowns are physical and financial capital. Physical capital is a tangible asset that can be touched in a real sense, while financial capital refers to the legal ownership of assets such as physical capital.
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