Question

Long Answer Questions :
2.1. What is meant by physical capital? What are two types of physical capital? Write the main
features of each with example.​

Answer 1

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Answer 2

Answer:

It consists of tangible, man-made goods that assist in the process of creating a product or service. The machinery, buildings, office or warehouse supplies, vehicles, and computers that a company owns are all considered part of its physical capital.

Physical capital is divided into two types they are: I) Working Capital : Raw materials and money at hand are called working capital. II) Fixed Capital: Tools, machines and building etc. are called Fixed Capitals.

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