Question

explain the disadvantages of using physical capital

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Answer 1

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• The biggest disadvantage of this capital is that they are affected by normal wear and tear which limits their use and that is the reason why the majority of machinery and other fixed assets are to be replaced by the company after few years of their use.

Answer 2

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The biggest disadvantage of this capital is that they are affected by normal wear and tear which limits their use and that is the reason why the majority of machinery and other fixed assets are to be replaced by the company after few years of their use.