Question

Q 4. Elucidate the advantage of human capital over physical capital. *

Answer 1

Answer:

Understanding Human Capital vs. Physical Capital

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.

The balance sheet provides an overview of the value of all physical and some non-physical assets. It also provides an overview of the capital raised to pay for those assets, which includes both physical and human capital.

Explanation:

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