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Answers
Explanation:
Human capital consists the skills, knowledge and experience possessed by individual or population, viewed in terms of their value or cost to an organization or country.
Physical capital consists of tangible, man-made objects that a company buys or invests in and uses to produce goods.
Capital is the lifeblood of corporation. It allows a business to maintain liquidity while growing operations. Generally, capital is used to refer to physical assets in business. It is also used to refer to how companies obtain physical assets. Both physical and human capital are important.
While human capital can be difficult to measure, the impact of investments of human capital can be measured and analysed with the same ratios used to measure and analyse the investment of physical assets. Investments in physical and human capital both lead to fundamental improvements in the business model and better overall decision-making.