What do you understand by capital? Explain different types of capital.
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Capital is a term for financial assets, such as funds held in deposit accounts and funds obtained from special financing sources. Financing capital usually comes with a cost. The four major types of capital include debt, equity, trading, and working capital.
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Answer:
Capital: It is the money used for business, farming, opening of factories etc.
•Types of Capital :
i) Physical Capital
>example: manufacturing equipment etc.
ii) Fixed Capital
>example: Land, building etc.
iii) Working Capital
>example: Cash, inventory etc.
iv) Human Capital
>example: Technology, skill etc.
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