Question

distinguish between physical capital and working capital with suitable example​

Answer 1

Answer:

Physical capital: Physical capital is the variety of inputs required at every stage during production. ... 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.

Answer 2

Answer:

working capital :-

Working capital is money that's available to a company for its day-to-day operations. ... A company's working capital reflects a host of company activities, including cash, inventory, accounts receivable, accounts payable, and the portion of debt due within one year (as well as any other short-term accounts).

physical capital :-

Physical capital consists of man-made goods that assist in the production process. Cash, real estate, equipment, and inventory are examples of physical capital. Physical capital values are listed in order of solvency on the balance sheet.

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