distinguish between fixed , working and human capitap
Answers
Answer
1.Physical capital:
Physical capital is the variety of inputs required at every stage during production. It includes fixed capital and working capital.
Fixed capital:
Tools and machines range from a plough to a tractor and sophisticated machines like generators, turbines, computers, etc. The tools, machines, buildings which can be used in production over many years are called fixed capital.
.Working capital:
Production requires a variety of raw materials. It requires money to make payments and buy other necessary items. Raw materials and money in hand are called working capital. Unlike tools and machines, these are used up in production.
For example, Yarn required by a weaver; clay used by a potter.
▪Human capital:
One needs knowledge and enterprise to be able to put together land, labour and physical capital and produce an output; either to use it by oneself or to sell in the market. This is known as human capital, which enables better production with human skill and knowledge.
Answer:
The answer are given in explanation
Explanation:
*Fixed Capital - it is used to acquire non current assets that would which is invested by the company such as business.
*working capital - it is used to acquire the financial purposes given by a company. It is used to serve as day to day business or work.Examples are tools, buildings etc.
*human capital -the knowledge to put fixed capital, working capital, skills , knowledge together by an population or individuals of a country.
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why capital is important?
As we know that capital is a important part in our business. without capital no business can be done or exist, so there are three types of capital explained above.